Niche wholesaler and ProgramBusiness.com Storefront, Insurance Programs of America (IPOAUSA), recently announced a new program that expands its offering and footprint in the Hospitality industry. The program, through Lloyd’s of London and offered exclusively by Florida-based IPOAUSA, provides Property, Liability, Data Breach, Employment Practices, and Umbrella coverage lines designed for limited and full-service hotels.
We spoke with Stefan Burkey, founder and CEO of IPOAUSA, about the newly designed program, its features, and immediate plans for expanded coverages lines. Stefan founded IPOAUSA after years of working on the retail insurance side, building a multi-million-dollar book of business in Hospitality with properties across the country.
“We wanted to provide our agency partners with additional markets that addressed the target class of limited and full-service hotels,” explained Stefan. “We’ve been so successful in the Hospitality industry with our Synergy of 3 Divisions, in which we offer agencies markets to place and write various types of risks in one place – whether it be through Admitted, Non-Admitted, or Excess & Surplus Lines – that we wanted to add to our portfolio. Lloyd’s provided us with its financial strength and an opportunity to design a program that addresses the specific needs of this hotel sector with key features that will be attractive for our agency partners to sell.”
The program is available in all states on a non-admitted basis. Limits are available up to $20 million per location, and the target is for hotels built after 1987. There are no minimum premiums and a limited number of agency appointments for the program.
This new hotel program includes the following key Property features:
• Agreed Amount
• Backup of Sewers and Drains
• Business Income (ALS) with Ordinary Payrolls
• Cimicidae Infestation (bed bugs)
• Employee Dishonesty
• Equipment Breakdown
• Fire Department Service Charge
• Fire Protection Equipment Recharge
• Forgery or Alteration
• Lock & Key Replacement
• Money & Securities (on and off)
• Outdoor Property
• Ordinance & Law
• Personal Effects & Property of Others
• Trees, Plants, Shrubs
• Utility Services
In addition, within two months, the program will be expanded to include several key coverage lines, including an Umbrella with a $5 million and $10 million limit that’s rated based on the number of rooms. The coverage is through Torus, and has a minimum premiums starting at $1,500.00.
Employment Practices Liability Insurance (EPLI) will include coverage for wage and hour lawsuits, a risk that continues to outpace all other types of workplace class action lawsuits throughout the country. In addition, there will be a sublimit for defense and investigation as a result of INS action. “This sublimit is particularly important for operations in border states, such as Florida, Texas, California, and Arizona,” said Stefan. “What’s more, it’s really key for the hotel industry which relies on less-skilled workers, putting operations at a greater risk for immigration-related issues in their employment practices.”
Data Breach coverage for limited-service hotels will be available through an exclusive arrangement with Beazley. “The Beazley Breach Response program is normally only available to large resorts,” explained Stefan. “Through IPOAUSA, we are making coverage available to limited-service hotels. Included is breach notification and credit monitoring services with separate coverage limits for third party claims; breach response coverage for forensic and legal assistance, and notification costs; bureau credit monitoring services; and crisis management sublimit for public relations; a separate limit of liability for privacy, network security and media claims; and more. There is a $100,000 PCI sublimit.”
IPOAUSA is licensed in all 50 states and provides insurance agents and brokers with flexibility and choice when it comes to finding markets for their customers. Through IPOAUSA, agents have access to one resource with the ability to place accounts in the various market alternatives available, giving them a competitive edge – even more important today as pricing in the industry is firming.
A suite of insurance products is available for these niche industries:
• Hospitality – Limited-Service Hotels, Resorts & Spas, Registered Historical Hotels, Restaurants, Golf Courses, Condominiums
• Apartments – Complexes, Management Companies, Development Firms
• Traditional Coastal/High-Valued E&S Placement
In addition, when working with IPOAUSA and its staff, agents not only get the markets they need, but they also have partners providing underwriting and risk consulting with a proven track record for success in the industries they serve. To find out more about this brand-new, exclusive Hotel program and each of the niche programs IPOAUSA offers, visit www.ipoausa, or contact Stefan at 877.653.IPOA (4762).