Read our full Product Feature in Canadian Lodging News (pg. 20). Excerpts below:
In an effort to save on insurance premiums, an increasing number of hotel properties are hiking deductibles to save cash. While the property owners save dollars month to month, they are assuming more responsibility for every minor incident or repair.
Experts point out that in cases of water damage and sprinkler-related accidents, the resulting expenses could spiral out of control and owners are best to prepare for these ‘minor’ cases ahead of time, or risk being on the hook for thousands of dollars in damages.
… Russell Poste, Senior Advisor with Howard Noble insurance, “While these incidents are rare, the residual damage to the building and the insurance implications should not be overlooked or underestimated.”
Gregory Orndorff is with A-1 Flood Tech and has witnessed firsthand the harmful effects of water damage.
“If the building owner is assuming more responsibility in order to not put a claim on their insurance, then stopping the flow of water becomes crucial if it means you are on the hook for every $5,000, $15,000 or even a $35,000 occurrence.”
Hotel owners know all too well that accidental fire sprinkler activations come with the territory – whether it’s a rowdy guest hitting or damaging the sprinkler head or a bride using it as a garment hanger, the result is a torrent of dirty water flowing from a pipe at rates exceeding 25 gallons per minute.
“In many municipalities, the building manager is not allowed to shut off the building’s main water supply until the fire department has arrived, but they can shut off the activated sprinkler head,” said Greg Patterson, President of Shutgun, who engineered the product along with a retired Toronto District Fire Chief. “These minutes are crucial in terms of damage inflicted, which puts more onus on staff, maintenance and service people on the scene.”
Russell Poste, brings up another concern in situations where guests are displaced.
“The hotel’s insurance may be able to cover the damages and clean up, but that does not account for any displaced guests or their potential lost business as a result of the incident.”