When your insurance carrier and your parent company are at odds, what do you do? That’s the issue facing Best Western Franchise owners to the news that the company is re-evaluating its relationships with franchisees based on their current insurance coverage. At issue is the standard assault, battery, and molestation exclusions that hotel insurance carriers have on their policies. Understandably, the company is requiring the coverage to minimize loss exposure.

However, things get sticky for franchisees looking to add the endorsement to the existing policy. Hotel insurers are saying no to requests for the re-attachment of the much-needed coverage. That’s leaving a lot of franchisees twisting in the wind.

Many insurance policies contain an assault and battery exclusion that excludes claims arising from assault, battery, fight, altercation, misconduct, or other act of violence. Policy holders are left looking for coverage elsewhere, which may or may not be adequate. Too often, hoteliers pay for coverage only to find that a claim against the endorsed policy isn’t covered. For instance, cases of lawsuits claiming the hotel acted with some inherent intent have been enough to exclude coverage on a number of policies depending on in which state the claim was filed. Also, coverage may be limited to defense costs only, or defense costs up to a low indemnity sub limit. If you’re shopping for an endorsement, understand fully the terms you’re agreeing to. Otherwise, you could be purchasing a policy that doesn’t fit your needs or those of your parent company.

VIP Hotel insurance has solutions to help hoteliers navigate through this current situation. We have markets for hoteliers to choose from, and we can help you understand your coverage options, what the endorsements cover, and what exposures you still face. We specialize in hotel insurance. We understand the complications of coverage, the limits, and we can match a product to your business needs. We can help you meet your obligations to your corporation and protect your business investment.

Flicker photo credit: olya