Hotel owners face a broad array of challenges when it comes to mitigating risks. Whether you’re a single motel or part of a chain, you need to be concerned with protecting and maintaining assets. You’ll need to be concerned with physical, human, and intangible assets.
Some of the major concerns that hotel owners are faced with include sabotage, natural disaster, injury, criminal activities, terrorism, and fire. On a more common basis, you might be concerned with injuries and claims or injuries on hotel property, or the theft of services or merchandise.
There’s no doubt that as a hotel owner, you frequently feel pulled in many different directions to deal with immediate problems and trying to prepare for the future. One of the best ways to reduce your risks is to consider whether a captive insurance company can help you with some of your concerns in the long run. Policies for a captive insurance company contain many of the same provisions as typical commercial insurance contracts but they go above and beyond by reinsuring your particular risk needs.
As an added benefit, maintaining control over that captive company may even give you investment control over assets for that company. If you’ve got risks that cannot be covered under the typical umbrella of a commercial insurance contract, you’ve got to look elsewhere. A captive insurance company may alleviate your concerns, protect your assets, and allow you to build a long-term plan. Email us at firstname.lastname@example.org or call 732-521-9455 to begin.
For hotel business owners, there are big benefits to setting up a captive insurance company. This can be a valuable way to protect your company and save money at the same time, since captive insurance companies are known for tax flexibility. A captive insurance company is an affiliate of a business that is created to reinsure particular risks of that business. The captive can be formed in the U.S. or in a foreign jurisdiction. Policies can contain all of the basic terms that are included in commercial insurance contracts and premiums are determined by independent actuaries.
The goal of a captive is to help pick up the risk that has already been held by a business that “self-insured”. This means that the business has some kind of specific need for which it is too expensive or impossible to get typical insurance. In this case, the captive serves a very important role of improving the risk protection capability for the business. Some examples include earthquake coverage, food-borne illness concerns, or cyber theft.
Surplus that is not used to pay out claims can be distributed out to shareholders as dividends. Control over this captive also gives the client investment control over the assets with the captive in certain situations. Captive insurance companies benefit from special tax treatment under the Internal Revenue Code. As a result of all these benefits, business owners for thousands of companies have been able to accumulate a great deal of pre-tax wealth through captive insurance companies. Hotel owners take note: you should consider how a captive insurance company suits your needs and helps you insure specialized risk. To get started, contact us at 732-521-9455 or email us at email@example.com
Security breaches seem to be on the rise. Target’s customer data breach impacted 110 million Americans and the Neiman Marcus breach affected 40 million, and it seems like we are hearing about new breaches every few weeks. Staying ahead of the curve is critical for those in the hospitality industry, and hoteliers have an excellent opportunity to consider their own risk reduction and planning tools in the wake of security breaches across other industries.
Hotels are major targets for financial and identity theft. Since all hotels work through credit and debit cards on file, this already exposes a lot of risk for private customer information. Those credit cards can be accessed and digitally “swiped” any number of times during a guest’s hotel stay- whether it’s at the bar, ordering room service, or for a spa charge. Every swipe opens the door for identity theft without the hotel’s knowledge.
One common gaping hole for hoteliers is unsecured wireless internet. While a hotel owner may think he or she is doing the right thing by providing free and easy access, an unsecured network really poses a big threat. Hackers can more easily access your network and programs in order to steal information and records from your service.
There are a few steps hoteliers can take to beef up security. Restricting access to data and collection of data is one way to protect customer privacy. Critical identifying information should be stored securely and a database should be created about under which computers and servers various information is kept. Encryption is one easy way that hotels can store information safely, reducing the risk of guest identity or financial theft. This is a great opportunity to review your existing procedures and policies to determine the risks.
If you’d like to talk more about how planning can help you prevent problems & how asset protection planning can help you to shield your assets from such liabilities, contact us at 732-521-9455 or firstname.lastname@example.org today.
Damon Mallatere, president of Appalachian Hospitality Management, is in hot water after three hotel guests died of carbon monoxide poisoning. As a recent article explains, the business executive was recently indicted on charges of involuntary manslaughter.
Although investigators determined that the deaths were the result of several factors, Mallatere is the only person who has been charged. The deaths occurred when carbon monoxide from the hotel’s swimming pool rose out of a corroded exhaust pipe and into a hotel room. The first two deaths occurred in April and the third occurred in June.
Although it is uncommon for business executives to face criminal charges for injuries and deaths that occur on business property, this case should serve as a warning to all business men and women that accidents can happen, and they may be held responsible.
Competent performance is only the first line of defense against potential liability incurred through a business. Not only can competent performance reduce mistakes, but it lessens the likelihood that a businessperson will be held responsible for accidents. For those accidents that cannot be avoided or defended against, asset protection is a vital back-up plan. If individuals like Mallatere do not have asset protection plans in place, their personal property and belongings may be at risk.