As a risk manager for the hotel chain sector, I would consider property risks as one of the factors that would least likely render an establishment to be uninsurable. (Jardine Lloyd Thompson (JLT) Asia , 2008)
My judgment is based on the following premises: (1) It is very common for any establishment to experience damages to property in one way or another. These are losses that establishments such as hotels should expect. Apart from the usual wear and tear of buildings, it is expected for establishments to experience some damage or loss of property in a number of ways. The coverage for damage to property is more likely measured accordingly with regard to the value of the property and the likelihood of the property to get damaged. This is usually agreed upon by the client and the insurer upon the inception of the contract. The amount of coverage has a lot to do with the type of risks that such property is exposed to. This depends upon the property’s location, type of clients, and the hotel’s target market, among other factors. (2) Should the damage to property be due to accidents, acts of God, forces of nature, or any fortuitous events, there is a fixed amount that the insured can claim. Insurance proposals are most likely to have explained the extent of the coverage due to the client at the onset of the transaction.
It is standard in most insurance policies that the amount for which a certain property or establishment is insured is fixed at a certain amount. The amount insured is usually approved by the insurer at the inception of the contract, based on the value of the establishment (client) to be insured and the client’s capacity to pay. The amount that can be claimed courtesy of riders, such as for accidents and other unforeseen events is thus also fixed and is based on the amount insured. The approval of such riders is also subject to the approval of the insurer. There is usually a certain percentage allotted for such claims.
Apart from the factors stated above, I have chosen property risks as my answer as because property risk is a common insurable risk that is commonly included and considered when insurance proposals are drawn.
Reference List
Jardine Lloyd Thompson (JLT) Asia . (2008). Integrity At Work. Retrieved February 15, 2009, from Jardine Lloyd Thompson (JLT) Asia : http://www.jltasia.com/media/publications/pdf/Hotels_brochure.pdf
