PUBLISHED ON: January 6, 2010
Those in the gaming and hospitality business are exposed to a wide range of perils, from lawsuits stemming from slot machine malfunctions to food poisoning claims to catastrophic hurricane risks. Effective risk management can mitigate these risks to a substantial degree, and also transfer the financial risk of loss and damage to insurance companies through the purchase of insurance and, in some cases, reinsurance where captive insurance companies are utilized.
It is important to keep in mind that not all insurance policies are created equal. There are huge variations in the scope (and quality) of insurance coverage that can be purchased from the insurance industry for gaming and hospitality risks—especially when it comes to so-called “first-party” property insurance.