Hotel and Lodging Industry Insurance Coverage Issues: Insurance Best Practices for Disasters

Some of the most significant threats to the lodging industry are insurable.  These include: (1) catastrophic health issues caused by virus and bacteria outbreaks, such as Legionnaires Disease, SARS, Bird Flu, Swine Flu, Mad Cow Disease, and Anthrax, and (2) property and income loss caused by Hurricanes and Typhoons.  These are the topics we chose to discuss at the 2013 Georgetown Law Hotel and Lodging Legal Summit, a permanent legal conference addressing cutting edge topics impacting hotels and resorts.

Unfortunately, when faced with either of these two kinds of scenarios, following insurance industry custom and practice is seldom the best approach.  Each of these scenarios raises complex multi-faceted legal issues, ranging from legal privilege that is all too often jeopardized by the involvement of insurance broker claims advocates, to favorable coverage law that may be unknown to brokers and ignored by insurers.

The paper we presented at the summit, “Georgetown Hotel and Lodging Legal Summit 2013” addresses some of these legal issues, and offers practical advice for lawyers tasked with understanding insurance claims.  The linked course materials provide step-by-step insurance guidance for those faced with either of these two kinds of disasters.  The take away from this presentation is summarized below. (more…)