The lodging and resort industry faces a significant exposure to hurricanes. In an article, Preparation for the Hurricane Season Includes Insurance and Risk Reviews, which I wrote for Lodging Hospitality, I noted the following:
Once again, the Atlantic hurricane season is upon us. With it comes a sense of apprehension for all along the coast, especially for those in the hospitality industry. For many, a few months’ income will make or break a business, so a severe storm brings potential ruin for a business that is not sufficiently insured. While business owners cannot predict a storm, they can protect their businesses financially; understanding both the insurance product and a business’ risk is essential.
Hospitality businesses thrive on the Atlantic and Gulf Coasts, but success comes with an unavoidable risk of hurricane loss. Sufficient insurance is the best way to confront that risk. It brings peace of mind for business owners, investors, employees and customers with knowledge that they are protected from the financial calamity that comes with a severe storm and that the business will have the opportunity to prosper in the years to come.
The current lull in the weather may be the last chance for many to properly prepare for this hurricane season. I strongly suggest policyholders follow the advice suggested in the above article and in yesterday’s post, A Guide to Property Insurance for the Upcoming Hurricane Season.