At SullivanCurtisMonroe, we pride ourselves in bringing the latest and most innovative approaches available to our clients. Our complete risk management program for hotels, motels and lodging chains includes specialized plans for Property/Casualty, Workers Compensation, Group Medical and Executive Benefits.

Comprehensive programs are offered for Luxury Hotels and Mid-Market Hotels. SCM Compensation, our Workers' Compensation product, is unique in the industry and has helped individual properties to dramatically drop their loss ratios and improve profitability.

In addition, our clients receive the following benefits:

• Lower premiums through group-purchasing
• Customized Coverages for the lodging industry
• Three-year policies with a limitation on rate increases
• Centralized Claims Service
• A.M. Best-Rated A+ Insurance Company
• Premiums not subject to audit
• Premium financing with preferred rates

SCM Property/Casualty Program

The Property/Casualty insurance product is created exclusively for the hotel industry and includes the following coverages:

Custom Hotel/Motel Coverages:

• Commercial Liability
• Professional Liability
• Directors & Officers Liability
• Building, Equipment & Contents
• Business Interruption
• Surety Bonds
• Kidnap & Ransom Insurance

Alternative Insurance Mechanisms

• Captive Insurance Companies - Formation & Administration
• Risk Retention Groups
• Risk Purchasing Groups
• Chronological Stabilization Plans
• Self Insurance

Personal Coverages

• Life Insurance
• Homeowners Insurance
• Personal Automobile Coverage
• Yachts & Airplanes

SCM Luxury Hotel Program

Program Background

Preferred Hotel Insurance Group is a group of independent luxury hotels and resorts that purchase property and liability insurance as a group. The objective is to obtain premiums and coverages similar to those available to large hotel chains.

Qualifying Properties

Luxury hotels rated four-star or four-diamond by the Mobil Travel Guide or AAA Tour Book, are appropriate for this program, but certain three star/diamond hotels are considered luxury hotels as well. Typical qualifying properties offer 250 to 800 rooms and charge a base room rate of $150 or more per night.

Clients will enjoy the following advantages:

• Access to volume purchasing with similar quality hotels.
• Self-rating of the primary policy. As the certainty of the rate for luxury properties increases, the premium cost associated with uncertainty decreases.
• Coverages that are often not available to independent buyers.
• Minimum premiums on excess liability are spread throughout the group, removing the minimums that would apply to an individual property.
• The liability program is rated on a per-room basis, eliminating audits and removing the bias against luxury hotels inherent in the ISO rating system where a receipt basis is used.

Types of Coverage:

• General Liability
• Property
• Auto Liability
• Auto Physical Damage
• Crime
• Boiler and Machinery

Premium finance programs have been arranged through Combined Premium Finance with interest rates lower than can be obtained individually.

For additional information on any of these issues, please contact Bill Redford, Hospitality Division, at (949) 852-4808.

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