Updated Insurance Requirements for Franchised Hotels
Franchisees | The general insurance requirements for all franchised hotels in the U.S. & Canada are included in the franchise agreement for each hotel. The updated and specific requirements (by brand) for all franchised hotels have now been issued in a new brand standard format.
It is the responsibility of all franchisees to comply with current Marriott standards. Understanding that renewal dates vary, we expect existing hotels to be compliant with the new insurance requirements at the time of their next insurance renewal, and we expect new hotels to be compliant 30 days prior to opening. Please note the Franchise Insurance Requirements standard now includes requirements for additional insurance lines such as employment practices liability insurance and special insurance endorsements (e.g., coverage for bacterial illness) as part of the commercial general liability policy. Additionally, the standard includes the option for Marriott to require cyber liability insurance. This coverage is currently under consideration and if Marriott determines it necessary and available, all franchisees will be required to procure cyber liability insurance as early as year-end 2016. We will provide an update as soon as additional information is available.
In the meantime, refer to MGS: Insurance Compliance for additional details on Marriott’s insurance certificate tracking tool, CertFocus, and how to ensure your hotels are compliant with these standards.
