Bed & Breakfast Market Warms Up
With New Coverage Opportunities
New exposures make the B&B segment a cozy niche
for innkeeping-savvy agents
instead for closer-to-home, travel-by-car
trips, wrapped around local activities.
Many inns are targeting this “staycation”
crowd with packages that include outdoorsy
adventures like ATV trails, hiking, hot-air
ballooning or even zip-lining. Others are
offering home comforts like organic meals
BY BONNIE CAVANAUGH
COMPETITION AMONG bed & break- fasts, a thriving sector in the hospi- tality industry, has led many B&Bs
to expand their offerings to include activities that promise a more adventure-based
stay—creating exposures that provide
agents and brokers inroads to new
or expanded business.
According to the Professional
Association of Innkeepers International (PAII), bed & breakfasts are
a $3.4 billion industry. There are
some 15,000 B&Bs operating in the
United States, says PAII President
& CEO Jay Karen. And while the
number of locations has dropped
from 17,000 in 2009, the industry remains
healthy because the performance of the
existing inns has been solid.
“Supply is down, but [business] is certainly
up for B&Bs,” says Karen. The recession, he
explains, is causing many travelers to rethink
big hotel chains and expensive flights, opting
of underwriting for Philadelphia Insurance
Cos. in Bala Cynwyd, Pa. And so far, he
adds, these expanded offerings have been
good news for the B&B insurance market.
“From horseback riding to mountain
biking, [B&Bs are seeing] increased
exposures,” says Skiles. What’s more, B&Bs
that are building new facilities—
like henhouses, spas and stables—
to accommodate new attractions
are also increasing their property
exposures, creating further selling
opportunities for agents.
“I know one couple at a B&B
where they’ve added a treehouse and
yurts (tent-like portable housing)
where you can stay, and added this
exposure,” he says. “They’re catering toward
a [more active] type of clientele from a
liability standpoint. Their insurance agent
needs to make sure [the insured is] covered.”
But not all insurers want to take on
exposures like zip-lining or mountain biking.
Some insurance companies will package
I know one couple at a B&B
where they’ve added a treehouse
and yurts (tent-like portable housing)
where you can stay... They’re catering
toward a [more active] type of
clientele, from a liability standpoint.”
Brent Skiles, Assistant Vice President of
Underwriting for Philadelphia Insurance Cos.
served from local farms, hot tubs with
views of nature or local winery tours.
The clientele interested in such
adventures are mainly Baby Boomers—
older couples with empty nests, looking
for comfort and adventure close to home,
says Brent Skiles, assistant vice president
