Willis Group Holdings, the global insurance broker, in conjunction with Lloyd's of London underwriter Kiln, has created Hotel Reputation Protection 2.0 policy,to help protect hoteliers from losses as a result of adverse publicity.
According to insurance broker, the Hotel Reputation Protection 2.0 policy has been created to respond to incidents that lead to, or are likely to lead to, losses resulting from adverse publicity through any medium, from traditional to new media.
Specifically, the policy provides cover for lost revenue based on RevPAR figures, a performance metric in the hotel industry that measures revenue per available room.
The policy also provides cover for the cost of hiring a crisis management consultant to assist during the first weeks of an incident, which will pay up to EUR25m for both the crisis management costs and the reimbursement of the reduction in RevPAR.
The Willis-Kiln cover is designed to protect hotels against some of the most common causes of brand damage, including the death or permanent physical disability of a guest, and food poisoning caused by malicious or accidental contamination.
Willis global markets leisure practice leader Laurie Fraser said the product is designed to tackle both the actual loss of revenue and the costs of containment.