Insurance Disputes for Hotel Losses in Alabama and Florida

Helping policyholders throughout the Southeast protect their hotels and investments

When a grease fire, natural disaster, or any event strikes a hotel, there are multiple types of damage. The hotel buildings will need repair. If rooms can’t be rented to customers or the dining area can’t serve food and drinks, the hotel will lose profits during the interruption of the business. Maids, chefs, busboys, concierges, and other employees won’t be able to earn a living. The current customers will need to move and may file their own claims if their property was destroyed. The information technology system may go down preventing the ability to take bookings.

We understand that tourism is a major industry in both Florida and Alabama. At Warhurst Law, we understand the methods and tricks insurance companies will take to try to deny your claim or limit the amount of damage. We understand how to detail each item of loss under every applicable policy. In most cases, we can negotiate a just settlement that leaves you in the same financial position as before you had to shut down. When necessary, we’re ready to hold the insurance carrier liable in court.

Types of insurance policies for hotel businesses

Hotels need a variety of insurance policies to cover different risks. Standard policies for hotels include:

• Property insurance. Property insurance should cover the damage to the physical structure of hotel – inside and out. It should cover the foundation, all the floors, the rooms, any banquet or meeting halls, fixtures, and all parts of the hotel structure. In addition, property insurance should cover the beds, appliances, and all the contents of the hotels.
• Liability insurance. Liability protects you if someone gets hurts on your property for any reason. It’s a critical component of any commercial insurance plan.
• Business interruption insurance. This type of insurance is aimed at compensating the hotel for the income it loses because the hotel can’t operate at full capacity or can’t operate at all. There are two main parts to claims based on this policy. The first is calculating the amount of revenue that was lost. The second is figuring the expenses that must be paid such as a mortgage and utilities, and adjusting for expenses that can be avoided because the hotel isn’t operating.
• Flood insurance. Separate flood insurance is required to cover damage due to rising waters as opposed to water damage due to heavy rains or other causes.
• Comprehensive insurance. If the hotel has any vehicles to help people get to and from the hotel or for any other reason, comprehensive insurance should pay for the value of the vehicles.
• Workers’ compensation. If you have at least 5 employees, you probably need to carry workers’ compensation insurance.