Disaster-Related Hotel Business Loss Recovery—Unique Challenges
Hurricanes Michael and Florence are both gone, but the extent of their destruction is now coming into clearer focus.
Resolution of a business interruption claim for hotels can be particularly challenging because it can have so many moving parts (hotel departments, for example, are run like mini-businesses within a hotel) and because the loss-of-business duration usually exceeds the physical rebuilding period. "The impact on profits, on business income, from natural disasters can be more significant than on the cost to fix physical damage," reports Linda Kornfeld, Vice Chair of the Insurance Recovery Group at law firm Blank Rome.
"Disaster-Related Hotel Business Loss Recovery—Unique Challenge," by Mark Earle was published in Hospitality Net on October 19, 2018.