Hospitality was one of the first industries to bear the brunt of premium hikes and coverage limitations from insurance carriers after 2017’s hurricane season.
When hurricanes Harvey, Irma and Maria (HIM) ripped through the Caribbean and Gulf Coast last year, hospitality groups bore much of the damage as hotels, golf courses and leisure sites in tourist hotspots were devastated. A year later, many are yet to return to business as normal.
Having already paid billions in claims and facing an indeterminate bill for ongoing business interruption, the insurance market unsurprisingly cooled on hospitality companies with coastal exposures, forcing risk managers in the sector to work closely with their brokers to secure the necessary coverage at a reasonable price.
Jim Gaubert, senior vice president at JLT Specialty USA, said hospitality businesses with losses saw rates hiked by 40 percent with restrictions implemented on hurricane coverage. And according to Christian Ryan, Marsh’s US hospitality, sports and entertainment leader, property premiums as much as doubled in the worst hit lower Caribbean markets.
“Capacity largely remained but insureds felt the effects of having to pay more for the same terms and conditions,”…
