"We have developed a product specially designed to solve property insurance capacity as well as general liability facility for the hotel industry," Jorge Urrutia
executive vice president in charge of marketing, told CARIBBEAN BUSINESS."We have done so knowing our beautiful beaches and mountain settings are most important for the hotel and tourism industry and that there has been a lack of available markets at a reasonable cost with the types of insurance coverage and conditions that the industry requires."
Thus, while HotelMax insures multinational hotel chains such as Hilton
exclusive product also covers smaller hotels, inns, and paradors that would otherwise be left out in the rain without protection.According to Urrutia
, HotelMax not only provides general liability and umbrella coverage, but it also covers losses sustained from storms and floods.In addition, Aon
can insure a hotel's earnings if its business is interrupted by the power outages and water shortages that often accompany severe weather.
While Puerto Rico has thus far been spared the wrath of hurricanes like Katrina and Rita this particularly vicious hurricane season, losses sustained elsewhere affect the insurance market everywhere.Urrutia
revealed, "During the next few years, the insurance capacity for beachfront properties
is going to be scarce and expensive.This is so after the catastrophic season we are sustaining in the Atlantic and Gulf regions.It is our challenge and commitment to work with new markets and provide evidence of our risk management as well as loss-control programs to gain alternative coverage for our insured and prospects in the hotel and tourism industry."Urrutia
warned the industry could expect a 25% to 50% increase in insurance premiums as well as significantly higher deductibles.Nevertheless, he
is dedicated to offering the same rates and level of coverage for the coming year."Aon
Risk Services has been a pioneer in developing solutions in the insurance sector for many industries, including hotel and tourism.