Hurricane season can be unpredictable and as a hotel owner or manager, it’s essential to be proactive in safeguarding your property and business. Here are practical steps to take before a hurricane strikes:
Review Your Insurance Policy
Before hurricane season begins, thoroughly review your commercial insurance policy. Pay attention to the following:
- Coverage Details: Understand what’s covered, including property damage, business income and evacuation costs.
- Hurricane Deductibles: Know the hurricane deductibles specified in your policy.
- Additional Coverage: Consider any additional coverage you may need if it’s not too late.
Document Everything
Accurate documentation is crucial for your insurance claim. Here’s what to do:
- Photos and Videos: Take pictures or videos of your hotel’s interior and exterior. Capture all aspects, including rooms, common areas and amenities.
- Guest Records: Keep records of guest inquiries via phone and web. Note reservation cancellations due to the hurricane threat.
- Web Traffic and Bookings: Monitor website traffic, views and bookings. This data will support your claim.
Back-up Data and Records
Ensure you have digital backups of essential data:
- Guest Reservations: Regularly back up guest reservation data.
- Financial Records: Backup financial records, including income and expenses.
- Employee Information: Keep employee records secure.
Prepare for Evacuation
Be ready to evacuate guests and staff:
- Guest Evacuation: If the government issues an evacuation order, promptly evacuate guests. Include evacuation costs in your claim.
- Staff Evacuation: Consider transportation costs for staff members leaving the premises
Business Income Coverage
Understand your policy’s business income coverage:
- Lost Income: It compensates for lost income during repairs and reduced occupancy.
- Track Lost Bookings: Keep records of lost bookings and revenue due to the hurricane.
Cleanup and Debris Removal
Plan for cleanup costs:
- Debris Removal: Hurricane damage can extend for miles. Document debris removal expenses.
- Facility Restoration: Consider pumping, drying, and repairing facilities.
Extra Expense Coverage
Some losses may not be explicitly named in your policy:
- Food Spoilage: Cover food spoilage due to power outages.
- Compliance with Codes: Include costs related to compliance with new building codes.
- Staff Costs: You may be able to recover extra staffing costs incured while getting ready for the impending event as well as clean up. Existing star may be able to be repurposed and paid accordingly.
Fleet Vehicles and Auto Insurance
If your hotel has a fleet, ensure they’re covered:
- Repair weather-related damage to vehicles.
- Address shattered windshields, flooded engines, and other issues.
Guest Relocation Plans
Co-ordinate with other hotels in your chain:
- Relocate guests if your site becomes unsuitable for bookings.
- Maintain good communication with guests during the relocation process.
- You may incur extra claimable costs by offering incentives to look after your valued guests.
Remember, thorough preparation and documentation can make a significant difference when filing an insurance claim after a hurricane. Stay safe and protect your business!
