Lodging Hospitality Guest Column: Insuring Against Risks with Sustainable Hotels

08/18/2011

Green building has grown exponentially in the past few years. As of March, 91 lodging properties had achieved the U.S. Green Building Council’s LEED certification. An additional 1,100 properties have registered to seek certification. This should come as no surprise to those familiar with trends in green travel. Ecotourism is one of the fastest growing segments of the global tourism industry.

According to marketing firm PhoCusWright, more than 40 percent of travelers now consider the environment when making travel choices. As part of a national survey, Travelzoo found that more than 90 percent of travelers prefer to stay at an eco-certified hotel if price and amenities are comparable to a non-certified hotel. AAA has even added an “eco” icon to its tour books.

But with new green initiatives, developers and hotel owners must learn to maximize coverage for changing risks and liabilities. For instance, if a lodging establishment suffers a loss during or after construction, will its insurance cover the replacement of or upgrade to green materials? What if an architect fails to deliver on an agreement to design a LEED project? And is there coverage when a building fails to achieve LEED-certification or is decertified?

Excerpt from Lodging Hospitality, August 18, 2011. To view the full article, click here.

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