Willis launches hoteliers’ package
Willis has joined forces with Lloyd’s insurer, Kiln, to launch a policy aimed at reducing the risks faced by hoteliers, given that bad news travels fast in the world of new media.
According to the broker, illnesses such as Norovirus, which is responsible for about 90% of serious stomach upsets, and Legionnaire’s disease, a lung infection caught from contaminated water, can ruin a hotel’s reputation and balance sheet, overnight.
Fatalities or serious injuries among guests are also likely to lead to empty rooms.
However, the Hotel Reputation Protection 2.0 policy provides cover for incidents that lead to, or are likely to lead to, losses resulting from adverse publicity through any medium, from traditional to new media.
Specifically, the policy covers lost revenue based on RevPAR figures, the hotel industry’s standard measurement of revenue per available room.
It will also pay for a crisis management consultant to assist during the first weeks of an incident, providing up to a maximum of €25 million for both this and the reimbursement of the reduction in RevPAR.
Commenting on the launch, Willis’ global markets leisure practice leader, Laurie Fraser, says: “In the extremely competitive hotel industry, reputation accounts for approximately 30% to 40% of a business’s overall worth.”
He adds: “Therefore, damage to reputation, which spreads virally through social and other media channels, can have a significant financial impact.”
Category: Business Insurance News, Insurance News, Willis News
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