Fireman’s Fund Insurance Company has introduced a new crisis management coverage that pays for professional public relations counsel to help businesses overcome disaster and preserve their reputation as well as for expenses required to get back to normal operations as quickly as possible.
“Hotel operations face unpredictable losses requiring coordinated management action and communication to restore customer trust,” said Karlyn Carnahan, vice president of commercial business for Fireman’s Fund. “As a result, we are introducing an industry-first solution of crisis management coverage that extends budget protection to mid-tier policyholders – a cover needed by all levels of customer but previously available only for very large businesses.”
Carnahan identified workplace violence as an incident that can generate enormous reputational issues with immediate impact on income and employees: “Our crisis management option would offset expenses a business such as a hotelier would incur when responding to a shooting incident by providing communications action to support credibility proactively. A similar scenario would be expense protection in the event of an outbreak of a communicable disease on the hotel premises.”
Coverage limits can vary widely according to the industry covered and the size of the business revenue stream, but underwriters expect most small-to-medium-size customers will need limits in the $25,000-to-$100,000 range.
A primary feature in the policy is coverage for post-event expenses for an event such as workplace violence. The policy covers medical and funeral expenses, psychological counseling for employees, and travel expenses for people injured in the crisis, witnessed the crisis or work in the location where the crisis occurred.
The new coverages can be combined with Fireman’s Fund’s coverages that address premise evacuation expense, food spoilage and contamination, errors and omissions for miscellaneous service and guest event cancellation insurance. The result: “Unprecedented protection for hotel properties, income, guests and employees,” said Carnahan.
Carnahan said that, “We aim to be the market of choice for independent agents with hotel risks. Our comprehensive policy breadth and key optional coverages prove we can be creative problem-solving partners for hotel owners seeking a long-term partnership with their insurer.”