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January 2007 |  |
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Late Night Power Loss Chases Hotel Guests, Causes $531,000 Damage
Unexpected Breakdown Shows How Much Hotels Depend on Equipment
It was midnight at an airport hotel with guests settled into almost all 245 rooms when the power went out and smoke filled a stairwell. They were evacuated as firefighters searched for the source. Nobody was injured and there was no damage to the building, but an equipment breakdown caused a half-million dollar loss.
LIGHTS OUT
An underground cable had shorted out between a utility transformer and the hotel's main electrical panel. The electrical arcing also damaged wiring and components for the hotel's telephone and cable television systems. The underground conduit was located beneath the concrete garage floor and couldn't be easily reached.
GUESTS DEMAND REFUNDS
A generator was rented and overhead electrical wires rigged, but some guests asked to be relocated to another hotel. Many of the guests who returned to their rooms demanded partial refunds for their inconvenience. HSB paid $531,568 to cover repairs, lost business income and extra expenses under the hotel's equipment breakdown policy.
EQUIPMENT IS EXPENSIVE
Hotels depend on many types of equipment and technology to provide the comfort and services that their guests expect. Values are measured in tens and even hundreds of thousands of dollars. And many hotels also operate restaurants, business meeting centers, swimming pools, health clubs and other facilities.
NEW TECHNOLOGY, NEW EXPOSURES
Equipment is critical for heating, hot water, cooling and electrical power; elevators, security and food services. Communications systems include PBX phone systems, reservations and billing computers, TV satellite systems - even high-speed Internet connections that business travelers need to stay in touch.
HSB OFFERS MORE PROTECTION
Hotels need equipment breakdown insurance. HSB provides broad coverage and services, such as coverage for elevator parts that other companies may exclude, decades of equipment claim experience and jurisdictional inspections. We can help your clients prevent equipment breakdowns and get back in business when a loss does occur.
For information contact your HSB representative, or call HSB's Customer Solution Center toll-free at 1-800-345-1122.
Click here for more actual claim examples of equipment breakdown losses reported by hotels.
