The Underwriting Facilities of Professional Liability Insurance Services, Inc. announced that as of the start of June, it is offering an insurance coverage to lodging facilities for business interruption and extra expenses that result from infestations of bedbugs.
According to the insurer, it is the first firm to offer this type of coverage. The features of its policy include the following:
- Expenses of up to $5,000 (no co-insurance applies) related to decontamination of the affected room(s) of the lodging, as well as the room(s) that are immediately adjacent. After the initial $5,000, co-insurance of 10 percent is applicable.
- Expenses relating to the decontamination, cleaning or extermination of the homes of affected customers (no deductible)
- Business interruption coverage when loss of revenue to the lodging has occurred (no deductible)
- Additional expenses for rehabilitation (no deductible), which may also include:
Cost of overtime for regular staff members
Cost of marketing efforts
Other expenses related to mitigation
- Payments related to extortion threats (no deductible)
- Administration of first aid to customers onsite (no deductible)
- No requirement of a loss threshold or waiting period to activate coverage
- The availability of a period as long as six months for restoration and rehabilitation
The new Professional Liability Insurance Services bedbug policy also includes a deductible-free crisis management service by Special Risk Management Inc. (SRM) which can be implemented immediately.
This service involves the action of a certified crisis management team which will be able to help during a bedbug event, through the use of a 24/7 help and information line, assistance with regulatory authorities and their requirements, and aid in rebuilding a reputation within the community by way of effective marketing and control of the media.
Bedbug prevention services are also available.