Hotels Need Supplemental Legal Defense Insurance
Unexpected risks are part of the dynamic world of hospitality. While standard insurance policies provide a baseline level of protection, they come with limitations and exclusions. BOLD can offer crucial protection for property owners and help safeguard their interests by representing them in legal proceedings and more.
What is Supplemental Legal Defense Insurance?
Supplemental legal defense insurance is a specialized insurance policy designed to cover legal expenses that may arise from lawsuits or legal disputes when your primary insurance carrier denies coverage. A carrier may either deny coverage altogether or defend a claim under a “Reservation of Rights”, which notifies the insured that the insurance company is still investigating the claim with the right to deny in the future. During this review, insurance companies look to find policy exclusions or ambiguities to deny the claim. This is when BOLD takes over and provides total representation in litigation from beginning to end.
Hotel Property Risks
Hotels and other sectors in the lodging industry, such as vacation rentals and bed and breakfasts, can face various risks. These include, but are not limited to, mold actions, water damage, intentional acts, subrogation, specific personal injury incidents, fire, and natural disasters. Many claims resulting from property damage will likely not be covered or limited by your primary insurance policy. Lawsuits filed by third parties may be excluded or limited as well.
Comprehensive Coverage is an Important Part of a Risk Management Portfolio
Having a BOLD Supplemental Legal Defense Insurance Policy will step in where primary insurance companies step out. Legal fees can quickly become enormous, and the process of defending a claim or lawsuit can cause a substantial interruption. Even a successful and lucrative business can become drained and eventually be forced to shut down. Supplemental legal defense insurance will mitigate these costs and provide support throughout the entire legal process.
The importance of supplemental legal defense insurance for hotels cannot be overstated. The variety of risks faced by these properties necessitate a comprehensive approach to insurance coverage. Having robust insurance coverage is not just advisable, it is essential for long-term success in the hospitality sector.