- Hotel and vacation rental insurance gap coverer InsuraGuest is expanding its reach to Europe and Asia this year, and expects to be registered and licensed in all 50 states before the end of the year
- The company is currently licensed in 16 states from Maryland to Nevada, offering protection in case of accidental in-room damage, theft of personal property, accidental medical expense or accidental death and dismemberment during a stay at a property
- The lawsuit filed by Grammy Award-winning singer and actor Meat Loaf following his injury at a Texas hotel underscores the potential benefits of having stop-gap coverage in place
- 2020 kicked off with U.S. hotels reporting an increase in revenue per available room (RevPAR), average daily rate (ADR) and occupancy during the week of December 29 to January 4
A fall that Grammy Award-winning rock singer and actor Meat Loaf suffered last year and the resulting lawsuit against the Hyatt Regency Hotel in Texas (source) serve as a high-profile example of the risks convenience service industries accept when they welcome guests, as well as the risks guests may face when they choose to stay at an establishment.
In the case of Meat Loaf, the 72-year-old entertainer was appearing at a convention when, according to the lawsuit and a video of the incident (source), he suddenly fell from the stage, allegedly as a result of stepping off a section of the stage where a curtain he believed to be on the stage was instead hanging over a void.
Conscientious travelers who use the hotel industry and similar convenience services providers such as independent Airbnb-type properties and vacation rentals may carry traveler’s insurance but can find themselves facing crippling costs if a medical incident or unintended property damage during a property stay fall into a coverage gap.
Utah-based InsurTech (insurance + technology) innovator InsuraGuest Inc. is expanding its service reach nationwide and internationally to help prevent such coverage gaps. The company’s proprietary InsurTech software platform is being adopted by an increasing number of establishments. The company recently released its wholly owned subsidiary, InsuraGuest Insurance Agency, LLC (IG Agency). IG Agency brings licensed insurance sales in-house to increase InsuraGuest revenues and create shareholder value, and is currently available in 16 states, from Maryland to Nevada. InsuraGuest expects to have regulatory approval to sell in all states before the end of the year (source). The company is also entering European and Asian markets this year (source).
“The InsuraGuest coverage is purchased by the property and provides coverage for covered claims from each registered guest and all room occupants upon check-in,” a company news release states (source).
The InsurTech arena has blossomed during recent years, as tech startups have become a popular target for custom-tailored insurance coverage (source). Within the travel stay industry, insurers are increasingly shifting toward filling the needs of small business startups operating as vacation rentals. Real estate analysts at iPropertyManagement.com predict the small vacation rental segment will become more profitable than hotels this year as the number of Airbnb users grows worldwide (source).
InsuraGuest Chairman and CEO Douglas Anderson noted that during 2018 travelers purchased 2.8 billion nightly hotel stays in Europe, compared with 1.1 billion in the United States.
“Additionally, $100 billion was spent on vacation rentals,” he stated (source).
Although 2020 is barely under way, industry watchers are already expressing optimism for the year after reports noted that U.S hotels’ revenue per available room (RevPAR) rose 4 percent during the week of December 29 to January 4 while the average daily rate (ADR) and occupancy grew 4 percent and 0.3 percent, respectively (source).
U.S. hotel occupancy was up 5.9 percent during the week before Christmas, according to the report.