Tourism and Hospitality
A hotel brings together under one roof activities that the market underwrites separately: accommodation, catering, bathing areas, events and, frequently, building work in progress. Then there is the calendar, because a season bills in weeks what the rest of the year prepares. Our tourism specialists know how each insurer rates the seasonality of margin, the relationship with the guest and the wording of the insured activity, and they design with you a programme that understands seasons.
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Something disappears from a client's room. What are we responsible for?
Articles 1783 and 1784 of the Civil Code make the hotelier responsible for the effects that the traveller brings into the establishment, provided they have been informed of them and the client has observed the indicated precautions. Article 1784 itself excludes armed robbery and force majeure, which are transferred to the establishment's damage policy. The cover includes the rest in a deposit guarantee with its own sub-limit, and normally separates what is kept in a safe from what remains in the room.
How do we calculate the capital for loss of profits in a seasonal business?
By taking the complete season as a unit, because it is the real billing unit of the establishment: the year's result is concentrated in a few weeks and a monthly average dilutes them. From there, the indemnity period is set to cover the entire next opening, because damage in November that arrives late in June costs a season even if the repair lasted six weeks. If the capital falls below the value, the proportional rule of article 30 of the Insurance Contract Law applies.
And if we have to close without there having been material damage?
The ordinary business interruption cover is triggered by a covered material damage, so a closure ordered by the authority without such prior damage is outside its mechanism. For this, specific extensions exist —closure by administrative resolution, food contamination, inability to access— each with its own sublimit and term. Alongside these, cancellation cover is taken out, which covers reservations and events cancelled for the reasons named in the policy terms and has its own sublimit and indemnity period, different from that of business interruption. Deciding which are of interest is part of the renewal preparation.
