Risk identification and Transfer through Insurance in the Hotel Industry The first important step in risk management

is to systematically identifying and classify risks to which the Hotel is exposed. The method may be followed by a deep understanding of the process prone to risk and physical exploration of the risk to create a Hotel specific Insurance solution.

Hotels, Restaurants are exposed to various risks of which few are business risk (cannot be Insured and few are pure risks.(can be Insured . !ure risks which can be transferred to Insurers are explained as below. "perational risks. These are risks that result in losses in the course of carrying out the normal business activities in a Hotel. Hotel has several internal resources, systems, processes and employees.

Fire and explosion. Hotels are exposed to the risks of fire and explosion which could arise due to improper use of cooking facilities, defective gas installations, defective#overloaded electrical installations or e$uipment, unsafe use of open fires, improper storage or disposal of waste materials or any other unsafe practices which may cause a fire ha%ard. Breakdown of Hotel machines:- The hotel infrastructure like air&conditioning, mechanical ventilation, fire services, lift#escalators, plumbing#drainage, lighting,

laundry machines and catering installations, are exposed to risks of breakdown. ia!ility "uest health and safety. The hotels provide guests an environment which resembles a 'home away from home( with addons. It thus becomes the responsibility of the hotel to ensure its guest)s well being and physical safety while they are on hotel property. Hotel guests may be exposed to health risks due to lack of adherence to hygiene standards in food preparation or any other unhygienic practices. The physical safety of the guests also runs the risk of being compromised in the process

of their using the services and recreational facilities of the hotel such as gymnasium, swimming pools, sauna, steam room, barber#beauty salon, spa or any other personal services. They may also be exposed to outside threats like *aw + order threats and Terrorist activities etc. #mployee employees basis. The vulnerable health and safety.: - ,iven the changing weather conditions Hotel are incresingly exposed to becoming ill or in-ured on the -ob, on a daily nature of their -ob, increasing stress levels makes them increasingly to risks of slipping and tripping, risks associated with heavy&duty cooking

e$uipment, knives and other kitchen e$uipment which can prove to be dangerous if handled improperly, musculo&skeletal disorders (such as back in-uries , diseases due to manual contact with ha%ardous materials etc.

Fraud and integrity risk. Hotels are also exposed to fraud and integrity risks in many different forms. Theft, misappropriation of assets and fidility risks by employees, manipulation of financial statements, credit card frauds etc.

$utomo!ile lia!ility:- Hotels maintain their own automobile fleets for guest use and also own vehicles for employee transportation. Increasing costs of automobiles, repairs, exposes the hotel industry automobile related risks. If hotels offer valet services, it also exposes hotels to liability risks arising due to damage to guests) vehicles. ,raphical Representation of Hotel Risks.

The are several Insurance !olicies which covers the above risks whicha Hotels is exposed to. The list is growing with the increasing needs......and Insurance solutions are evolving with time. !late ,lass Insurance .pecial /ontigency !olicy 0eon .ign Insurance 1ire !olicy 2urglary !olicy 3achinery 2reakdown !olicy 4lectronics 4$uipment !olicy /onse$uential *oss !olicy

/ontractors 5ll Risk !olicy 1idelity ,uarantee Insurance !olicy !ublic *iability !olicy !roducts *iability !olicy !rofessional Indemnity !olicy 6irectors and "fficers *iability !olicy *ift (Third !arty Insurance 4mployers7 *iability !olicy *iability Insurance 5ct !olicy

!ersonal 5ccident !olicy 3otor !olicy 3oney Insurance ,roup 3ediclaim !olicy

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