Case Study: How B. F. Saul Helped a Hotel Group Weather a Disaster

One Malfunction, $5 Million in Damage

Nobody expects a disaster to happen to them... until it does.

For a boutique hotel group in the Northeast, it started with a single failed A/C unit. That malfunction sparked a fire that forced a full building shutdown and ultimately resulted in more than $5 million in damage.

Fortunately, B. F. Saul Insurance had been advising this client since 2020. We had already stabilized their coverage, identified potential vulnerabilities, and built a program tailored to their unique property portfolio to respond to the unexpected.

While the event itself was devastating, the outcome wasn’t. Thanks to the right protections, the client experienced minimal out-of-pocket costs, a fast-tracked recovery, and a renewal that would have been nearly impossible without strategic advocacy.

Hospitality’s Insurance Headwinds

The hotel industry faces outsized challenges when it comes to insurance. Hospitality properties tend to experience more frequent claims than many other sectors, including guest injuries, water damage, and fires. But the risks don’t stop there.

Hospitality's uniquely complex risk profile is shaped by aging infrastructure, inconsistent maintenance records, and high foot traffic. Fluctuating occupancy levels, seasonal demand, and high staff turnover add further pressure. Even small details, such as ownership structure, branding, or guest demographics, can significantly affect how carriers evaluate and price risk.

For boutique hotel groups like our client, the challenges can go even deeper. These properties are often housed in older, rebranded buildings with limited documentation and systems that fall short of current standards. For instance, a building that was home to a Best Western in the 1980s might have outdated sprinkler systems that raise red flags for underwriters and lead to stricter terms or higher premiums.

Plus, boutique hotels aren’t corporate-owned Marriott or Hilton locations. Without the support of a national parent company, every coverage decision becomes more important. Even a small coverage gap can lead to major consequences.

At B. F. Saul, we understand these nuances. We’ve helped hospitality clients across the country secure the coverage they need, rather than just accepting what is quoted. Our advisors know how to navigate the intricacies of branding, ownership, and property conditions. We build insurance programs that reflect the reality of each operation instead of relying on one-size-fits-all assumptions.

How We Started: Stabilizing a Chaotic Program

When the hotel group first partnered with B. F. Saul, their risk program was in disarray. Coverage had been pieced together across multiple carriers, changing year after year as they sought lower premiums. That created notable coverage gaps, unnecessary overlaps, and other blind spots that left the client unknowingly vulnerable to risk.

Our advisors took a different approach. We started by getting to know the business inside and out, familiarizing ourselves with how our client’s properties were structured, operated, and branded. From there, we helped them transition to a more stable and strategic program with a single carrier.

Our role isn’t just transactional, it’s relational. We rebuild trust in the insurance process by focusing on education and transparency. We want our clients to understand what they’re buying, why it matters, and how it helps them stay protected in a crisis.

The Fire: When an A/C Unit Sparked a Multi-Million Dollar Crisis

The fire started in a guest room, which then triggered flames that spread through the building. Water damage from the sprinkler system compounded the destruction, ultimately forcing the property to close entirely for repairs.

The financial impact was severe, with over $500,000 in remediation costs and $5 million in total losses. But because of how their coverage had been structured, the client was protected on every front, with an $11 million internal reserve set by the carrier. Their policy included replacement cost coverage rather than actual cash value, a broad ordinance and law endorsement, no coinsurance penalty, and robust business interruption protections.

This wasn’t luck. It was the result of careful planning, smart negotiation, and an understanding of how property claims play out in real-world scenarios.

Claims Advocacy in Action: Minimizing Downtime and Disruption

As the client worked to get the property back online, the B. F. Saul team stepped in behind the scenes. Our dedicated team served as liaisons between the client, the carrier, and the adjuster—fielding questions, managing documentation, and ensuring fair and timely payouts.

While navigating claims can be frustrating and opaque, our job is to make it easier. We stay involved from start to finish, keeping your best interests front and center. In this case, we helped the client avoid delays, minimize disruption, and maintain confidence through every stage of the process.

Renewal Against the Odds

Despite the open claim and recent loss history, we knew the renewal needed to stay on track. We presented renewal in just five business days.

We worked directly with the carrier to maintain coverage in a difficult market. While the deductible did increase, we advised against purchasing additional coverage to lower it, as the added premium costs outweighed the potential benefits.

In the end, the policy renewed with a 19% increase, well below what others would see in similar conditions. The client kept the coverage they needed and stayed with the carrier they trusted.

“It’s incredibly difficult to find carriers willing to underwrite hotel portfolios like this one, let alone offer the kind of broad, comprehensive coverage we were able to negotiate for. But our team built a strong, well-structured insurance program for this client in what's honestly one of the toughest sectors we handle.” — Brandon Newlands, SVP, Senior Director of Coverage and Claims, B. F. Saul Insurance

Advisory That Pays Off When It Matters Most

This case proves what we’ve long believed: coverage is only as good as the guidance behind it.

B. F. Saul Insurance doesn’t sell policies. We build insurance strategies that protect complex businesses like this one. Our boutique approach means every client gets proactive guidance, high-touch service, and a team that knows how to advocate when things get tough.

If your hospitality company needs expert protection, we’re ready to help. Contact B. F. Saul to assess and protect your property portfolio.