This article originally appeared in Focus (Industry News), published by the New York State Hospitality & Tourism Association (Fall 2011).
The hospitality industry relies upon property insurance to protect against the risk of property damage, from minor mishaps to the catastrophic damage caused by hurricanes,
accidents and other unforeseen events. But in the aftermath of a disaster, restaurants, hotels, and other entities may face significant losses in revenue which are not directly related to costs incurred by fixing crumbling frescoes or a malfunctioning electrical system, but rather, arise out of the interruption of operations required to repair the damage. If and when this occurs, business interruption insurance may provide compensation for these losses.