Altium Insurance Services (AIS) has introduced a pandemic insurance product for the hospitality sector, backed by one of the largest insurance companies in the world. Available exclusively to hotel franchisees, franchisees, management companies, REITs and operators of multi-property establishments, this Hospitality Pandemic Insurance (HPI) protects against the revenue loss that occurs when a pandemic strikes.
In association with Belmonte Consulting LLC, AIS has collaborated with the global insurance company for over a year to design this hotel specific product. Today, HPI is sold exclusively by AlS founder Bill Coluccio, and marketed to hoteliers by Steven Belmonte, CEO of Belmonte Consulting LLC, and CEO of Hospitality, Amdel Associates, a New York-based investment banking firm specializing in mergers and acquisitions. .
“The devastation that COVID-19 has wrought on our industry has underlined the importance of threat management in capital structure planning; this pandemic insurance constitutes a viable solution to this problem,” Belmonte said. “HPI is innovative. Given how hard our industry has been affected by COVID-19, it is very important to protect ourselves from this happening again — and unfortunately, scientists say it could happen. This insurance protects the revenue stream of the hotel company or the franchisor. It is the biggest problem not You need to think about what you’ll likely see this year.”
He added, “Bill Coluccio is a longtime friend in the industry. His experience in customized insurance and risk mitigation products spans the professional liability, life, property, casualty and transaction insurance markets and makes him the right man to pioneer this product. Based on feedback from a very soft launch among industry colleagues We believe we have a real winner. Today, HPI is available to any owner/franchise operator or multi-property hotel company looking for future pandemic protection.”
Hospitality pandemic insurance highlights:
- The term of HPI compensation is 180 calendar days.
- HPI pays claims immediately, with no delays in adjustment.
- For publicly traded companies, HPI provides a level of protection for shareholders.
- HPI load may provide support for lower borrowing and capital costs.
- HPI provides liquidity and can enhance credit rating.
- HPI reduces reputational damage.
“When owners began to realize the impact of the pandemic, they closed their doors and filed business interruption claims with their insurance companies,” Coluccio said. “Unfortunately, pandemic exclusions in typical business stoppage insurance policies make them contractually immune to loss related to COVID-19, so no hotel has received a down payment. We designed HPI in collaboration with Belmonte Consulting LLC specifically to meet the needs of those who operate a hotel franchise or A multi-property enterprise when the next pandemic strikes.”
Here’s how the HPI works: if a civil or governmental authority shutdown occurs, and the World Health Organization issues a public health emergency of international concern—essentially halting travel—or a state or local government issues restrictions on access to a location or business, or A similar denial of customer access occurs, or a restriction of airline activity occurs, HPI will pay hotel owners immediately to cover up to 80% of the revenue they will receive from any affected properties, for up to six months. In addition, if a claim is made by the franchisor/owner, then the franchise fee, marketing fee, management fee, etc. will be paid by the franchisor as well from the claim.
“This is direct insurance coverage for what matters,” Colocchio said. “The product is fully customizable and features liberal incentives and simple claims processes. Franchisors can take advantage of HPI to protect them and offer it to franchisees, who can either opt in or opt out, whichever is better. The premium will be paid by the franchisor and the franchisor can be named as an additional insurer. , or we can add language to the policy that when any claim payments are made it should cover any existing lien fees that will be due in connection with a claim payment. If there’s anything we’ve learned in the past 20 months, it’s that there’s no life raft waiting there. It’s likely Having an HPI is the closest thing.”
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