Over the last 5 years, reports of confirmed bed bug events have skyrocketed, causing the general public to panic and take extreme measures to rid themselves of these pests. Bed bug events have become such a hot-topic in the media it is no surprise to see the up-turn in bed bug related litigation. General liability/commercial insurance carriers have declined to cover this exposure leaving the hospitality and lodging industries to finance this litigation from their own revenues.
In March 2006, a woman staying at a New York hotel claimed she awoke with more than 600 bed bug bites all over her body. She described the feeling as being “on fire” and wanting to tear her skin off. This case is being considered a “landmark” case for bed bug litigation with a demand of $20 million.
PLIS, Inc. – Underwriting Facilities, has introduced Bed Bug Third-Party Liability Insurance Program for the hospitality and lodging industries. This program addresses the growing exposure of liability associated with bed bug events.
- Claims arising from bodily injury due to a bed bug event (Cimex Lectularius/Cimex Hemipterus)
- Claims made & reported policy
- Pay on behalf/duty to defend
- Punitive & exemplary damages (where insurable)
- Supplementary payments (up to $10,000)
- Insurable limits up to $1 million/$5 million
- Risk management assistance
- Certain Underwriters at Lloyd’s
Each policy holder receives live assistance with bed bug issues from Specialty Risk Management, Inc. (SRM), a loss control consulting company. Insureds have free, unlimited telephone access to SRM as a resource throughout the policy year.
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