In terms of insurance rates, prices for policies
in this line of business will remain stable for
2011, says Stephanie Maynor, senior marketing specialist for Markel Corp. of Richmond,
Va., which includes B&Bs and country inns
among its categories of coverage.
Markel, which continually reviews its
coverage enhancements to meet the B&B
industry’s evolving needs, offers various
specially designed packages such as guest-inconvenience coverage and historic-prop-erty coverage. It also has special endorsements like specialty-inns enhancement.
Every B&B should carry commercial
packages for building and contents, business income, general liability, as well as
inland marine and commercial auto if the
vehicles are owned in the business name,
Maynor says. The most common risk-management issue for the B&B niche continues
to be slip, trip and fall incidents.
“Since many of the buildings are older, sometimes the floors are uneven,”
Another coverage area that needs to
be considered: historical construction. “A
lot of these inns are 100 years old,” says
Stewart. “You need a replacement-costs
endorsement and, in some cases, histori-
Calvista represents five different in-
surance companies that offer parts-and-
replacement costs and content limits.
Markel offers coverage for historic build-
ings and unique property, as well as for spe-
cial events, pools, ponds, lakes and other
unique B&B risks, Maynor says.
For coastal B&Bs in hurricane alley,
the biggest factor is having any insurance
at all. Some innkeepers are going “bare”
because they can’t afford $20,000 property
insurance on a four-room B&B, Karen says.
Others have considered creating a captive
insurance program for B&Bs, he adds.
Yet there has not been much B&B
movement in the captive arena. “We have
not heard anything,” says Louisiana Commissioner of Insurance Jim Donelon, who
says there have been no applications from
B&B owners “in a couple of years.” NU
E Bonnie Cavanaugh is a freelance writer
based in Hackettstown, N.J. She may be reached
April 18, 2011 | National Underwriter Property & Casualty | 27