The coronavirus pandemic has upended industries across the globe with the hospitality sector among the hardest hit, with personal and business trips coming to a halt due to travel bans and restrictions and major conferences and events cancelled or postponed. Many hotels have been forced to make difficult decisions amid the crisis. The economic fallout is far-reaching with the hotel industry seeking government funding in the stimulus package being hammered out in Congress in order to allow hotel owners to continue to make loan payments, support employees who are being laid off, and pay suppliers.
Hotel owners in the meantime are looking at various measures during these challenging times, which could impact contractual obligations with their vendors. There are many legal issues to be reviewed in looking to change or cancel vendor agreements, some of which are covered in a recent article published in Hotel Online. The article, “COVID-19 Pushes Hospitality Industry to the Edge: Key Considerations for Stakeholders,” discusses everything from contractual provisions with regard to Force Majeure, liability limitations, indemnification and dispute resolutions, to issues related to workforce reduction, insurance, among others.
As insurance specialists in the hospitality and restaurant sectors, Distinguished is committed to keeping our agents and brokers updated on relevant information during this unusual and disruptive time. If you have any questions, please contact us.