Top Risks Within the Hospitality Industry

The economic recession hit the hospitality industry just as it did other sectors, perhaps even more so. Many businesses did not want to invest funds in travel and individuals began reducing their vacations and leisure activities. However, as the economy recovered the amount of business and leisure travel increased as well. While an upsurge in travelers is good for business, it also poses risks that hotels and other lodging facilities need to address.

Cybersecurity

Customer privacy is a concern that dominates almost every industry. Without a base of reliable clientele, no business can survive. If cyberattacks continually compromise a business, they are unlikely to secure repeat customers. Hotels are popular targets for cyberattacks because they collect a large amount of information about their guests. A hotel may have the address, phone number, credit card number, and more private information about any given guest that is a data goldmine to a hacker. As digital and automated systems become more commonplace, the hospitality industry needs to be aware of new cybersecurity threats as well as methods to address them.

Guest Conduct

Without guests, the hospitality industry could not survive. Even so, visitors pose a litany of threats to profitability. Guests may sue a hotel due to an injury or they can cause extensive property damage. Establishing an internal system to deal with guest safety and destruction of property can help prevent incidents before they occur.

Knowing the risks that face your hospitality business is a crucial step to protecting your investment. The Reilly Company Group can help you address and reduce your risk to achieve your business goals. To learn more, contact us.

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Risk Management Strategies to Improve Operations and Control Costs

groupRisk exposure comes in many forms. The process of managing this risk begins with understanding which risks are most likely to jeopardize your business. Once the primary risks have been identified, it’s time to develop practices to combat them. Though it’s impossible to eliminate all potential risks, creating a risk management plan will help to make them much less likely and less punishing for your organization.

  1. Evaluate Your Risk – It’s never too early to evaluate potential risks. As you create your business plan for your new company you can assess, evaluate, and plan for risks in all aspects of your organization: production, marketing, human resources, and real estate.
  2. Acquire Liability Coverages – After you have completed your risk evaluation, you should determine the types of business insurance coverage you need to protect your company, including liability insurance.
  3. Develop Your Plan – Purchasing liability insurance isn’t the only aspect of managing risk. You should also create a risk management plan that lists each potential risk and outlines how your company intends to handle each risk.
  4. Implement the Plan – Part of your risk management plan should include training your employees about company risk management policies. This way if a risk should develop, employees can take steps right away to help mitigate the risk.
  5. Execute, Measure, Refine – Your company’s risk management plan, insurance coverage and employee training should be routinely evaluated and updated to make sure it is relevant to the company’s current needs and potential risks.

If your company doesn’t have a current risk management plan, or you believe your liability coverages may merit review, contact the experts at The Reilly Company.

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Construction Insurance Tackles Water Problem

As American re-urbanization continues, city buildings must expand in size to accommodate the increasing population density. More people means more pressure on the city’s infrastructure, including sewer systems. But how does this affect construction businesses?

Construction insurers are seeing a variety of water-based claims.  For example, claims regarding water running backward up pipes and damaging roofs are not uncommon. Insurance companies believe this is because low-rise buildings are now expanding into multiple stories. The added construction calls for greater water usage, but the sewer system cannot always keep up with this demand. For example, major storms usually cause problems because the water has nowhere to go. The increased water damage results in increased claims.

The growing number of water claims can create challenges for construction companies of many shapes and sizes. In addition to urban density issues, climate shifts have made it more difficult to anticipate drainage needs in a given area. Non-frame related risks now include water damage as the biggest threat. Another major concern is sewer backup. Because this is a new issue, many construction companies are unfamiliar with the water problems that can plague their site.

The best way to reduce your construction company’s risk is to create a proper risk management plan. The Reilly Company Group can help you evaluate your risk to determine what level of coverage your business needs as well as develop and implement a risk management strategy. Contact us to learn more.

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Lesser-Known Facts About Homeowner’s Insurance

As most already know, homeowner’s insurance provides financial protection should a natural disaster or other calamity damage your home. This includes coverage for other types of losses that occur on your property. However, many homeowners are unaware of the specific nuances, details, and coverages within such a policy. Below are some often-overlooked facts that all homeowners should know about their policies.

Dogs Affect Available Coverage

Many policies provide coverage should your dog bite an individual on your property. However, many insurance companies place coverage restrictions on certain breeds. Some companies will not sell policies to individuals who own a dog regardless of breed. The risk of reduced or altered coverage increases with dogs that have a history of biting. In such cases, the insurance company may refuse to renew your policy, raise your premiums, or eliminate coverage for damages caused by the dog.

Homeowners Can Reopen Claims

After filing a claim, your insurance company will send an adjuster to evaluate the damages. After receiving the adjuster’s assessment, your insurance company will provide you with a check to cover the claim. However, sometimes you may not discover certain damages until after the company sends the check. Many homeowners’ policies allow them to reopen the claim to file for additional funds. In general, you have up to one year to file claims related to the damage.

Location Matters

Where you live matters when it comes to your homeowner’s insurance premiums. Your home’s proximity to a fire department can reduce your insurance costs. Some insurance companies keep a roster of fire departments and rank them against each other. If you live near a fire department with high ratings, your insurance company may offer you reduced rates. Having a fire hydrant within 1000 feet of your home can have a similar premium-reducing effect.

Buying a home is one of the biggest investments you will make in your lifetime. Having adequate coverage to protect your home is vital. To learn more about what your homeowners’ policy should cover, contact The Reilly Company.

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