When Far Away Problems Hurt your Business, Look to Insurance

Originally published in Focus (Industry News), published by the New York State Hospitality & Tourism Association (Fall 2010).

The massive travel disruptions caused by the 9/11 attacks, the Deepwater Horizon oil spill and the volcanic eruptions in Iceland - all of which severely impacted businesses in the hotel and hospitality industry far from the place where the disaster originated – should serve as a wake up call to hoteliers to make sure that their property insurance program covers business income losses resulting from such faraway occurrences. In the wake of the eruptions in Iceland and Gulf oil spill, insurance industry spokespeople and some insurance advisers immediately were on the airwaves to tamp down policyholders' expectations of coverage, usually on the grounds that such losses were not covered since there was no damage to the policyholder's own property.