Program administrator Fulcrum Insurance Programs, one of our longtime storefronts, has established a solid footprint in the hotels and resorts market. In fact, within the upscale and luxury hotel and resort niche, it is one of the top four markets bringing a level of expertise, services and products that agency partners rely on. Most recently, Fulcrum has extended its product line to offer a General Liability program for the full-service luxury hotels and resorts sector, delivering key coverages, benefits and advantages for an industry that is experiencing growth.
We spoke with Dusty Rowland and Eric Arthur, president and executive vice president of Fulcrum respectively, about their new product and how they have developed a program that is unique in the marketplace.
"We have a long history in the casualty market for upscale and luxury hotels and resorts, and wanted to leverage our experience and expertise to build a GL program," said Dusty. "We focused our efforts on finding the right carrier that could accommodate our needs, and put together a plan that is flexible both in its rating and underwriting and broad in terms of the coverages we're offering."
Fulcrum's General Liability program is rated based on an operation's number of rooms, with the premium being non-auditable. "We felt there was a great opportunity in the marketplace to take advantage of the inefficiencies of ISO and how they rate this market," explained Dusty. "ISO carriers rate this class of business on a receipt basis. Doing so creates a bias for upscale hotels and resorts because they charge more for their rooms and food and beverage service. This bias can only be overcome by creating a credit structure, which doesn't exist in an effective way. Program business, on the other hand, lends itself well to the luxury segment because we can take a room-rate approach and remove the bias against high-end hotels and resorts. What's more, as the hotel industry recovers and their annual revenues increase, they'll see higher GL prices with receipt-based rating. With our fixed-exposure approach, revenue increases will not impact a hotel or resort's liability insurance rates."
Another key reason for developing the GL program is that dovetails perfectly with Fulcrum's "green" platform through AGPOM, the Association of Green Property Owners and Managers, a 501(c)(6) non-profit organization that helps property owners and managers realize the value of environmental-friendly pursuits while offering incentives that stimulate participation. "The hotel industry more than any other class of real estate is actively engaging in the green movement," said Eric. "It's a natural fit to link our new GL program with the AGPOM platform we manage. Luxury hotels and resorts through AGPOM receive the benefit of premium discounts; have access to a green hotel plan; reduce operating costs, lower carbon footprints and increase property values; leverage our renewable energy credit (REC) program; obtain discounted green consulting services; and much more."
Eric also explained that along with the insurance program and AGPOM benefits, clients will have access to a web-based risk management and safety platform. "This value-added service we provide is designed to ease compliance, improve risk prevention efforts and results, and relieve regulatory pain points for the industries we serve," said Eric. The platform includes everything from safety training policies and procedures and safety programs to certificates of insurance management; HR & Benefits resources; employee training; incident tracking, reporting and management; and more.
Furthermore, the GL program was designed to provide broad coverage that competes with the standard market. Key coverages specific to the luxury hotel and resort niche include: Spa Professional, Green Public Relations and Crisis Reputation Consultant Coverage, Innkeepers Liability, Garagekeepers, Liquor Liability, and others.
Fully exclusive to Fulcrum, this program is available on a national basis. It is written on non-admitted A+ paper by well respected national carrier.. What's more, when the GL program is purchased, customers will receive a discount on Fuclrum's Umbrella product.
"We're very excited about our program," said Dusty. "It's specifically geared to the upscale hotel and resort and luxury segment, which typically includes entities with more than 300 rooms, are 10 stories or more, vacation oriented, charge $150-$200 and more per room depending on the geographic market, and offer higher-level services and amenities. We're have a great deal of underwriting flexibility in this arena and feel this is a great opportunity for agents and brokers to increase their market share in an industry that is growing with a product that delivers."
For more information about Fulcrum program for Hotels and Resorts, visit: http://fulcrumprograms.com/our-programs/fulcrum-for-hotels-resorts/. And for additional information about Fulcrum's new GL product, please contact Dusty or Eric at 425-453-5157.