‘Tis the season – not only for holidays, but for nonrenewal notices. At least one major hotel insurance carrier has sent out its nonrenewal notices, meaning that some of you reading this blog will be shopping for coverage. If you’re not careful, you could find yourself buying what appears to be a great deal, only to find that on the next renewal, the deal evaporates or worse, the company dumps the book of business, leaving you searching once more for hotel insurance coverage.

It typically happens that insurance companies make a big push to secure a new book of business, offering very attractive premiums and promising the moon. Even more typically, these same companies scale back on the promises and inch up the premiums once they’ve established a book. And as is the case with the latest departure, insurers tend to under-price and then find themselves in the difficult predicament of continuing a failing business model or dumping the business for more profitable pursuits. Either scenario leaves you looking for coverage. Yet again.

When shopping for an agency to help you with coverage options, ask yourself this – is your agency into this for the long haul? How many horses does your agency have in its stable of insurers? If you have an agency with just a few carriers, your options are limited. Our agency works with a substantial number of well-established carries, companies that have a long history of covering the hotel industry. We work with companies that offer regional coverage as well, giving you more insurance options and helping you control costs.

With new carriers entering the hotel insurance space, you need to approach with caution. How do these offers compare with what is already on the market? How does the coverage compare to what your current insurer offers? Is this company in it to establish a solid business or is it a case of testing the market by offering lower premiums to attract new business? Work with your broker to vet these new companies and offers.

Have you received a nonrenewal notice? How long have you been with your current provider? Have you had to compromise on any aspect of your coverage in order to continue your policy?

Flickr photo credit: Martin Deutsch