Minimum recommended coverage:
Building, Business Personal Property, Business Income, Employee Dishonesty, Money and Securities, Guests’ Property, Accounts Receivable, Bailees Customers, Computers, Contractors’ Equipment, General Liability, Employee Benefits, Professional, Umbrella, Business Auto Liability and Physical Damage, Hired and Nonownership Auto, Workers Compensation
Other coverages to consider:
Forgery, Computer Fraud, Commercial Articles Floaters, Fine Arts, Theatrical Property, Employment Related Practices, Environmental Impairment
Property exposures start with the cooking. Full service restaurants, which may include catering, are part of the resort. All commercial cooking protections should be in place. Wiring should be updated and at current code. Fire suppression systems should be in place since many resorts are at a distance from fire departments and early response to fire is imperative. Is there sufficient firefighting equipment? What activities take place that may contribute to a fire? What flammable liquids and other chemicals are on hand for maintenance and upkeep? How are they stored? Have additions and conversions been made with concern for fire safety? What security is in place to prevent theft? Is there 24-hour surveillance?
Crime exposures are multiple. First is Employee Dishonesty with the resort’s funds and inventories. All ordering, billing and reimbursements must be separate job duties and reconciled regularly. Inventory ordering and inventory control must be separate functions with a monthly inventory conducted. External annual audits must be conducted with more frequent internal audits taking place. Second is Employee Theft of guests’ property. A procedure must be in place for access to guests’ rooms and any deposit boxes kept for guests’ property. Who has keys? What about re-keying? What procedures does the risk have in place to prevent employee theft of patrons’ property, money, checks or other goods? Are references required? Are references and background checks carried out? What procedures are followed if an employee does commit theft? Theft of Money and Securities is the last concern but it is still important. Cashiers’ drawers should be kept stripped and regular deposits should be made throughout the day. A minimal amount of cash should be kept overnight.
Inland marine exposure comes from Accounts Receivable, Computers and Valuable Papers. All data must be duplicated and copies kept off premises for easy restoration. In addition, there may be Contractors’ Equipment for maintenance of yard and property, Theatrical Property for shows, Commercial Articles for audio/visual equipment and musical instruments, Mobile Equipment for other items on premises that may also be removed from the premises, and possible catering activities. Bailees exposure may exist for either coat check or laundry. Fine Arts exposure is from paintings, sculptures, tapestries and antiques on the property.
Premises liability presents many exposures. Fire safety must be the first. Are adequate exits available and easily seen? Are stairways, railings, elevators, and floor coverings in good condition, meeting all life safety regulations and codes? Is there an effective alarm system that notifies patrons how to leave? How good is the overall care and maintenance of the premises? What services and recreational facilities are offered to patrons?
Spas tend to specialize in relaxation or exercise techniques for personal development. What types of therapies are involved? Do individuals have the appropriate professional credentials to administer the therapies? Are there “unusual” aspects to the treatments that could endanger individuals?
Professional exposure may exist in some spas for the therapies and treatments. Are all individuals working within their licensure and area of expertise? Are nurses and aides provided? Is this an adult-only facility?
Automobile liability exposure due to livery service is common as guests are escorted from the airport to the resort and back. All drivers must have the appropriate license for transport and acceptable MVRs that are checked regularly. Vehicles must be well maintained and records kept in a central location. Additional limo services may be provided. Valet parking services should be reviewed, along with the Garagekeepers exposure.
Workers compensation exposure is extensive. Cleaning and maintenance operations can cause workers to experience lung, eye or skin irritations and reactions. Slip and falls, as well as lifting, back injury, hernia, sprain and strain, are all common occurrences. If any lawn care is necessary, many exposures exist. If lawn care includes chemical applications of fertilizers or weed control, losses from this type of operation can be severe. Swimming instructors and guards, limo drivers, restaurant workers — all add their separate exposures to the mix. Therapists and aides may have special exposures based on the therapies administered.