Read our full Product Feature in Lodging News (pg. 20). Excerpts below:
In an effort to save
on insurance premiums, an increasing number of hotel properties
are hiking deductibles to save cash.
While the property owners save dollars month to month, they are assuming
more responsibility for every minor incident or repair.
Experts point out that
in cases of water damage and sprinkler-related accidents, the resulting
expenses could spiral out of control and owners are best to prepare for these
‘minor’ cases ahead of time, or risk being on the hook for thousands of dollars
in damages.
... Russell Poste, Senior Advisor
with Howard Noble insurance, “While these incidents are rare, the residual
damage to the building and the insurance implications should not be overlooked
or underestimated.”
Gregory
Orndorff is with A-1 Flood Tech and has witnessed firsthand the harmful effects
of water damage.
“If the building owner is assuming more
responsibility in order to not put a claim on their insurance, then stopping
the flow of water becomes crucial if it means you are on the hook for every
$5,000, $15,000 or even a $35,000 occurrence.”
...
Hotel
owners know all too well that accidental fire sprinkler activations come with
the territory – whether it’s a rowdy guest hitting or damaging the sprinkler
head or a bride using it as a garment hanger, the result is a torrent of dirty
water flowing from a pipe at rates exceeding 25 gallons per minute.
...
“In
many municipalities, the building manager is not allowed to shut off the
building’s main water supply until the fire department has arrived, but they can
shut off the activated sprinkler head,” said Greg Patterson, President of
Shutgun, who engineered the product along with a retired Toronto District Fire
Chief. “These minutes are crucial in terms of damage inflicted, which puts more
onus on staff, maintenance and service people on the scene.”
...
Russell
Poste, brings up another concern in situations where guests are displaced.
“The
hotel’s insurance may be able to cover the damages and clean up, but that does
not account for any displaced guests or their potential lost business as a
result of the incident.”
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