For Immediate Release Source: Caribbean Hotel and Tourism Association (CHTA) Contact: Greta Andzenge, Marketplace
Excellence +1 201 861-2056 greta@marketplaceexcellence.com CARIBBEAN HOTEL INSURANCE RATES TO
INCREASE BY 10 TO 40 PERCENT MIAMI (November 26, 2017) - Caribbean hoteliers
should plan now for an increase in insurance premiums anticipated to range
from 10 to 40 percent following two Category 5 hurricanes, which struck
several destinations in the region in September. Scott Stollmeyer, Managing Director, Barbados and Eastern
Caribbean for CGM Gallagher Insurance Brokers, made the recommendation during
a Caribbean Hotel and Tourism Association (CHTA) webinar earlier this month
entitled 'Hotel Property Insurance After the Storms'. He and other panelists advised that now is the time to
review coverage to ensure it is adequate to insure against possible future
damages, and without compromising coverage, to look at ways to minimize the
expected premium increases. Stollmeyer said for the past eight years the Caribbean has
enjoyed reduced insurance rates but that will now change. He said following
the hurricanes, insurance companies have begun reaching out to their clients
informing them of the increases that will occur in their next renewal cycle
for inland and beach properties. He explained this will lead to a "hardening"
market: "We are going to be in for some challenging times in the next
few years." The increases will affect the entire region, not only
those islands that were struck by the hurricanes. "The Caribbean is ...
lumped into one general region ... it's where the reinsurance markets are
looking at the Caribbean as a general region - everybody is going to be
impacted," Stollmeyer reported. Stanley Smith, Certified Public Accountant and Licensed
Adjuster with Smith Orloff & Associates, advised hotel owners and
managers to be proactive and be their own advocates when handling insurance
claims. "It pays to know your policy well before a disaster
strikes. First, making sure you're adequately insured, understanding
what's covered and what's not, and keeping good records are fundamentals
which hoteliers should adhere to." He provided examples of the claims process and how,
because of inadequate planning or not fully understanding their policy, many
hoteliers fail to fully recover insurable losses through their claim. He
advised that retaining your own advocate or adjuster can assist with
facilitating a claim. Magnus Alnebeck, General Manager of Pelican Bay Hotel,
Grand Bahama Island, advised hoteliers that before a storm, checklists must
be made and photos taken of everything. After the storm, staff must get a
grasp of the state the property is in, taking photos of any damage, and
managers should make sure that their staff is looked after, as they are the
most valuable asset. "What we have found is that the quicker you can
manage to create some sense of normality, or as we call it 'the new normal',
you get people into their routines and it will make the process of getting
back quicker," stated Alnebeck. He advised hoteliers not to wait until the insurance
company visits to start repairing the property but to ensure they document
any repair work they have done. He also recommended that hoteliers, who
usually have a lot on their plate after a storm, should delegate an
individual to be responsible for insurance claims. CHTA's next webinar on December 6 will cover business
resiliency and rebuilding for recovery. About the Caribbean Hotel and Tourism Association (CHTA) The Caribbean Hotel and Tourism Association (CHTA) is the
Caribbean's leading association representing tourism interests for national
hotel and tourism associations. For more than 50 years, CHTA has been the
backbone of the Caribbean hospitality industry. Working together with 1,000
hotel and allied members and 32 National Hotel Associations, CHTA is shaping
the Caribbean's future and helping members to grow their businesses. Whether
navigating new worlds like social media, sustainability, legislative issues,
emerging technologies, data and intelligence or looking for avenues and ideas
to better market and manage businesses, CHTA is helping members on matters
that matter most. For further information, visit www.caribbeanhotelandtourism.com. |
