Unlike other living communities, timeshares serve a veritable revolving door of residents, often with a new set of owners on the premises each week. So, it stands to reason that with more clients than a normal community, the timeshare industry is equally more susceptible to potentially damaging liability claims.
A timeshare company must be prepared for the worst. Timeshare insurance is essential to protect the company against a wide range of claims, including the following:
• Injuries resulting from accidents on timeshare property
• Worker’s comp actions
• Claims regarding board decisions
Why Carry an Umbrella (Policy)?
Generic timeshare insurance policies don’t always offer the financial protection a company needs. Commercial umbrella policies are specifically designed to provide businesses with supplemental insurance when a regular policy surpasses its maximum pay-out amount. For example, if a general liability policy pays out to a maximum of $2 million dollars but a claimant is awarded $2.5 million in damages, the commercial umbrella policy would kick in to pay the overage.
It is far more cost-effective to carry supplemental commercial umbrella insurance than to increase the amount of coverage provided by a basic timeshare insurance policy. Typically, the premium for a heftier generic policy far surpasses the cost of supplemental coverage. Still, not all commercial umbrella policies are created the same. Consult an experienced insurance professional to find the right fit for your timeshare company.