HOTEL & MOTEL APPLICATION

Chicago Hotel & Motel Insurance

This program is intended to provide all the standard coverage required for a complete package of insurance and risk management products and services specifically designed to meet the needs of preferred Hotel and Motel operations. Any individual property meeting the following criteria will be eligible to participate under this program.

Over the past 30 years Rodney Nars ,has placed insurance coverage for a multitude of hospitality companies including: sports bars, neighborhood bars, taverns, beer & burger joints, and many other great spots.

I. General Standards

• The structures should be modern, attractive and built after 1975. Premises over 25 years old must have proof of upgraded plumbing, wiring, heating and roofing in order to qualify.
• Franchised hotel/motels such as Radisson, Ramada, Holiday Inn, Best Western, Marriott, Hampton Inn, Howard Johnson, Country Inn & Suites, Comfort Inn , Comfort Suites and Doubletree Hotel shall be treated preferentially due to strict adherence to franchise requirements for customer satisfaction of safety.
• Accommodations must be open 12 months of the year and should not be made for long-term tenants. Rentals for less than a 24-hour period are prohibited.
• Premises must comply with NFPA Life Safety Codes and ADA regulations. Property must have a minimum of one ADA compliant guest room available.
• Hotels of three or more stories must have a written evacuation plan to anticipate fires and other major disasters. Such plans must be reviewed in semi-annual safety meetings with entire staff.
• Buildings over five stories must be fully sprinklered with adequate means of egress in order to qualify.
• When elevators are present, a written plan for elevator failure and passenger evacuation must be reviewed in semi-annual safety meeting with entire staff.
• Owners or managers should have a minimum of three years of hotel/motel management experience.
• There must be a 24 hours manager on premises at all times.
• All units must be equipped wit a smoke detection alarm. Battery powered units must be checked monthly; such checks are to be documented in written form.
• All General Underwriting criteria as per supplemental application must be acceptable.

II. Financial Standards

1. Ownership must have at least three years experience in motel/hotel management
2. Occupancy rate should average no less than 50% on a yearly basis
3. Must not have prior bankruptcy or insolvency history

III. Premises Property Standards

1. The premises must be located in a national board class 1-6. (NBC 7&8 will be considered on an individual basis)
2. Room interiors should be modern and attractive
3. No portable space heaters or gas cooking facilities are permitted in sleeping rooms

IV. Premises Liability Standards

1. Smoke detectors are required in rooms and corridors. Detectors must be hard wired or an acceptable maintenance program must be in place.
2. Sleeping room must have secondary locking devices.
3. Exits must be marked and interior corridors; stairwells and doors must have emergency lighting.
4. Tubs/showers must have effective non-skid surfaces, and glass enclosures must be of wired or tempered glass.
5. Walkways must be smooth and steps (over three) require handrails.
6. Parking areas should be smoothly surfaced and well lighted.
7. All sleeping rooms must have adequate egress to outside.
8. If the insured uses independent contractors to perform security services, they must not carry weapons nor use dogs. Acceptable contractors must:
   a. Provide certificates of insurance showing limits equal to or greater than the policy underlying limits.
   b. Name the insured as an additional insured.
   c. Provide Hold Harmless agreement.

V. Incidental Operations Conducted by Insured

1. Acceptable Incidental Operations
   The following services and activities provided directly by the insured are normally acceptable when they exist primarily for the convenience of hotel/motel guests, and there is limited solicitation of local community patronage.
   a. Gift shop and newsstands
   b. Restaurants
   c. Lounge and light entertainment
   d. Exercise and sauna room
   e. Room service
   f. Business meetings
   g. Barber/Beauty shops
   h. Lessor’s Rick Operations
   i. Stores
   
2. Unacceptable Incidental Operations
   The following services and activities conducted directly by the insured are not acceptable and exceptions must be referred to carrier. a. Bars, lounges, restaurants and nightclubs that actively solicit non-guest patronage.
   b. Cocktail services where guests serve themselves or where they are served free of charge. (Program Manager must approve Wine and cheese services.)
   
3. Incidental Operations Subject to Specific Requirements
   A. Swimming Pools
   (1) It is preferable for swimming pools to have a lifeguard, if used by a large number of children
   (2) Swimming pools must conform to local ordinances regarding fencing, lighting, electrical wiring, and depth markers. Pools must not be open to the general public. Pool rules, including hours of operation, must be clearly posted in a conspicuous place.
   (3) No diving boards are permitted.
   (4) All types of slides are unacceptable.
   (5) In all cases where children may be present, a fence or natural barrier with a minimum height of 48” and a latched self-locking gate is required.
   B. Banquets or catered events are acceptable if:
   (1) Seating capacity of banquets and conference rooms must comply with fire safety regulations.
   C. Restaurants and Coffee Shops
   (1) All the following NFPA requirements must be met.
   (a) A metal hood and duct covering all cooking areas must be installed. It must be an UL-300 system. No exceptions
   (b) Hoods and ducts must have at least 18-inch clearance from combustible material
   (c) Filters must be cleaned daily or as needed
   (d) Interior of hoods and ducts must be inspected weekly and cleaned as needed. An outside professional cleaning service with a written contract will be required.
   (e) An approved fire extinguishing system arranged for both automatic and manual operation must be installed. The system must provide protection for hoods, ducts and cooking surfaces including the deep fryer. The insured must have a signed contract to provide for a minimum of a semi-annual inspection and maintenance of the system. SYSTEM MUST BE A UL-300 APPROVED SYSTEM. NO EXCEPTIONS !
   (f) For other than electric appliances, provisions should be made for fuel shut-off upon actuation of the automatic fire protection system.
   (g) Deep fat fryers must have a high temperature limit switch, in addition to the operating thermostat, which will shut off electricity or fuel to the fryer if fat temperature exceeds 475° F.
   (h) Approved BC fire extinguishers must be provided in the cooking area
   (2) Restaurant employees must receive regular training and supervision in food handling, storage, health and sanitary requirements.

VI. Guidelines for Operations Conducted by Others on Behalf of the Insured or Guests

1. Independent contractors who operate within or visit the insured's premises.
a. Those operations normally acceptable when performed by the insured are also acceptable when performed by independent contractors operating on the insured's premises. Such contractors must:
1. Provide certificates of insurance showing limits equally to or higher than the underlying policy
2. Name the insured as an additional insured.
b. Alcoholic Beverages sold, dispensed or provided by independent contractors located on the insured premises must be underwritten subject to the same requirements as if the insured personally operates this service. Additionally, such contractors must also meet the requirements specified immediately above.
2. Independent contractors whose base of operations is away from the insured's premises but who provide service to the insured motel’s guests.
a. Acceptable – Most of these contractors do not adversely affect the acceptability of the insured since their base of operations is removed from the insured's premises and interface consists primarily of pick up and delivery.
b. Special Requirements – Restaurants
1. If the building is not owned by the insured and is over 100 feet from the motel/hotel, no special requirements apply unless the restaurant provides room service to guests. Then the restaurant operator must:
a. Provide certificates of insurance showing limits equal to or greater than the underlying policy.
b. Name the insured as an additional insured.
c. Provide Hold Harmless agreement.

2. If the restaurant building is owned by our insured
a. Must meet NFPA requirements outlined in Section V.3.c. (4).
b. The operator of the restaurant should be financially sound.
c. The restaurant operator must:

I. Provide Certificates of Insurance showing limit equal to or greater than the underlying policy.
II. Name the insured as additional insured.
III. Provide Hold Harmless agreement.

3. If the restaurant/bar or lounge building(s) are not owned by within 100 feet of the hotel/motel, (2) (a), (b) and (c) requirements (directly above) must be met.
Liquor Legal Liability – Exposure Grading of States
Liquor Liability Coverage will be extended in those states graded as A or B in the following schedule. In states graded as C&D, resident broker must confirm current legal status.
Subcontractors or adjacent restaurant/bar or lounge operations providing room service to guests (in all states) must provide:
1. A certificate of insurance showing limits for Liquor Liability coverage equal to or greater than the underlying policy.
2. Name the insured as an additional named insured.
3. Provide Hold Harmless agreement.

A = No Liquor Liability imposed by law.
B = Limited Liability imposed.
C = Severe Liability imposed.
D = Very severe Liability imposed.


GRADING AS FOLLOWS

A = Arkansas, Delaware, Kansas, Maryland, Nebraska, Nevada, South Carolina, South Dakota, Texas, Virginia, West Virginia.
B = Arizona, California, Colorado, Florida, Georgia, Idaho, Indiana, Kentucky, Louisiana, Maine, Montana, New Hampshire, New Mexico, New York, Ohio, Oklahoma, Rhode Island, Tennessee, Washington, Wisconsin, Wyoming.
C = Alabama, Alaska, D.C., Hawaii, Massachusetts, Mississippi, Missouri, New Jersey, North Carolina, North Dakota, Oregon, Vermont.
D = Connecticut, Illinois, Iowa, Michigan, Minnesota, Pennsylvania, Utah.
Underwriting – Liquor Liability

Restaurants that server alcoholic beverages are acceptable and those that have a lounge area are also acceptable provided the lounge is maintained principally for the convenience of diners as a place to meet before dinner or wait for a table. There must be an established strict procedure in place to prevent sale of alcohol to minors.
RESTAURANT OPERATIONS

The companion restaurant program is designed to serve the insurance needs of the Hotel/Motel Industry. In order for a restaurant program to qualify, it must be affiliated with a Hotel/Motel operation and comply with the Hotel/Motel program underwriting guidelines.
The restaurant program is selective, and is intended to write only above average risks sometime referred to as “white tablecloth” operations. They usually offer a combination of excellent quality food. Extensive menus, high level or service, and ambience and are moderately to very expensively priced.
Underwriting – Financial & Management

In order for a restaurant to qualify as above average, it must enjoy a healthy financial position. The location must have been successfully operated under the current format for at least three years. An exception may be made for operators with extensive restaurant experience or franchise organizations.
Underwriting – Property
No Underwriting consideration will be given without a completed restaurant questionnaire, and hard copy loss runs to ascertain that the restaurant risk meets the underwriting criteria.
Restaurants and Coffee Shops
1. All the following NFPA 96 requirements must be met:
a. A metal hood and duct covering all cooking areas must be installed. MUST BE UL-300 APPROVED SYSTEM NO EXCEPTIONS!
b. Hoods and ducts must have at least 18-inch clearance from combustible material.
c. Filters must be cleaned daily or as needed.
d. Interior of hoods and ducts must be inspected weekly and cleaned as needed. And outside professional cleaning service with a written contract will be required.
e. An approved fire extinguishing system arranged for both automatic and manual operation must be installed. The system must provide protection for hoods, ducts, and cooking surfaces including the deep fryer. The insured must have a signed contract to provide for a minimum of a semi-annual inspection and maintenance of the system. SYSTEM MUST BE AN UL-300 APPROVED SYSTEM NO EXCEPTIONS !
f. For other than electric appliances, precisions should be made for fuel shut-off upon actuation of the automatic fire protection system.
g. Deep fat fryers must have a high temperature limit switch, in addition to the operating thermostat, which will shut off electricity or fuel to the fryer if fat temperature exceeds 475o F
h. Approved BC fire extinguisher must be provided in the cooking area.
2. There must be strict procedure in place to make sure that all trash and smoking materials are properly disposed of upon closing.
3. There must be strict procedure in place to make sure all appliances such as coffee pots, warming ovens, music systems, and unnecessary lighting are turned off upon closing.
4. Curbs and other barriers so as to prevent vehicle damage must adequately protect buildings.

Underwriting – General Liability

1. Restaurant employees must receive regular training and supervision in food handling, storage, health and sanitary requirements.
2. Parking lots must be level and free of tripping hazards. Interior floors and carpets must not be worn or torn and must be free of tripping hazards.
3. Food must be properly stored in clean appliances and containers so adequate hot or cold temperatures are maintained. Dishwashers must be capable of operating at proper temperatures.
4. There must be more than one exit with illuminated exit signs above them. Doors must have panic hardware.