Staying Afloat in the Umbrella Insurance Market: Why Program Stability Matters for Hotels and Resorts

The ever-shifting landscape of the Umbrella market presents a formidable challenge, with rate adequacy taking center stage. Larger carriers, seeking higher returns, have been consolidating and scaling back on the capacity they offer. What was once commonplace as $25 million limits in a tower has dwindled to a mere $15 million or even less. Furthermore, insurers have been tweaking coverage terms and conditions, adding further complexity to an already intricate landscape.

Amidst this uncertainty, a stable and consistent market becomes a lifeline for agents and brokers seeking to secure comprehensive insurance coverage for hotels and resorts. In such turbulent industry cycles, finding a reliable partner is paramount. This is precisely why an increasing number of retailers turn to Distinguished Programs, placing their trust in our Hotels and Resorts Umbrella program.

As an esteemed pioneer in the industry, Distinguished has carved a reputation for itself by providing a steady anchor in an unpredictable market. With a wealth of experience and a commitment to unwavering stability, they offer agents, brokers, and their clients a sure-footed path to safeguard their investments in the hospitality sector.

In this article, we delve into the crucial role of program stability and how Distinguished’s expertise continues to shape the future of insurance for hotels and resorts.

You Could Say We Wrote the Book on Umbrella Stability

Distinguished Programs is a recognized pioneer and innovator, having created an Umbrella Liability purchasing group for the Real Estate industry nearly 40 years ago. The program, from the outset, was based on providing underwriting specialty and integrity, fair and accurate pricing, industry-specific coverage features, high limits, and long-standing relationships with financially strong carriers for a homogeneous group of insureds with sound loss controls in place.

“We brought the same level of professionalism and success with the Real Estate Umbrella Program to creating an Umbrella Liability purchasing group for Hotels and Resorts,” said Sean Young, Managing Vice President, Program Manager – Hospitality Umbrella Programs. Today, more than 20% of the nation’s hotel rooms are insured with Distinguished’s Hotel and Resorts Umbrella policy. Agents and their clients can count on our expertise and stability.

Strong Relationship with Carriers

Contributing to the success of Distinguished’s Umbrella program are the relationships we have with our carriers. “We have a strong and long-standing relationship with one of the premier and most prestigious ‘A’ rated insurers in the industry,” said Sean. “The same applies to the carriers with which we partner to build our towers.” Limits of up to $170 million are available in the program.

A View Toward Long-Term Profitability

From the outset, Distinguished’s Umbrella insurance program was based on operating profitability. “While perhaps 20 years ago or so there were a few dozen Umbrella purchasing groups, today only a couple of programs remain,” explained Sean. “Many of the programs that eventually folded were based on offering very low premiums that didn’t accurately reflect the group’s exposure. We have always provided fair, sustainable pricing so that our carriers, agents, and insureds can rely on us for the long haul. Clients are not going to see low-ball prices one year and significant increases the next.”

Robust Program, Industry-Specific Coverages, and Consistency

Rate adequacy has also enabled Distinguished to offer a robust program. “We’re able to deliver a better-quality product to clients that addresses the hospitality’s industry-specific exposures,” said Sean. “For example, we provide coverage for Legionella exposures, which is typically not available in the open market.”

In addition, with us, retail agents are not working with new carrier forms that require having to decipher new coverage features, terms, and conditions each year.

Underwriters Who Specialize in Hospitality

Our Umbrella program is also strengthened by our specialization in the niche market. Resources are devoted to developing a strong underwriting team, which is supported by actuaries who analyze trends and data to ensure rates accurately reflect exposures. We deliver better-than-average results because our underwriters are all focused on the hospitality industry. They each bring years of experience and expertise to the table, underwriting more effectively with industry-specific guidelines that ensure the right accounts are part of the program.

We Do Umbrella Liability for Hotels & Resorts Right

Our ability to underwrite appropriately and price our program accurately enables us to offer great limits and consistent, quality coverage with carriers that have been with us for years. “For us to continue to have a relationship with one of the most well-respected insurers in the industry speaks volumes about our approach,” said Sean.

How Distinguished Can Help

Distinguished Programs offers Hotel Umbrella insurance with limits up to $170 million. Our coverage options are suitable for a range of hotel classifications, including luxury, full-service, boutique and condo-tels, select-service, business class, and midscale hotels. Ensure your hotel clients are protected against costly settlements with our high-limit umbrella insurance.

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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