Project
Joint administrators were appointed over a trading hotel, spa and golf course complex. The property included significant listed building elements and continued to trade throughout the administration period.
We were instructed to provide comprehensive insurance coverage and hands-on risk management to protect the business during the trading period, whilst maintaining competitive insurance costs.
Approach
Understanding the complexity of the appointment and the need to maintain trading operations, we provided flexible and responsive insurance solutions throughout the administration. Our approach included:
- Pre-appointment strategic advice to help administrators understand insurance implications before accepting the appointment
- Flexibility around the appointment date, with cover arrangements adjusted as the timeline changed
- Day one confirmation of comprehensive cover for property, trading risks and liability exposures
- Immediate on-site visit to assess the property condition and understand operational risks
- Direct engagement with existing insurers who had terminated cover upon the administration
- Close collaboration with the management team and administrators to address ongoing risk management requirements
- Detailed review of reinstatement values for the listed building elements, ensuring adequate protection
- Regular liaison throughout the trading period to adjust cover as circumstances evolved
- Prompt cost reporting for inclusion in administration reports and creditor updates
The engagement required careful balancing of comprehensive protection with cost management, recognising the need to preserve value for creditors whilst maintaining essential coverage.
Results
We successfully arranged comprehensive insurance coverage that supported the trading administration and protected all stakeholders:
- Seamless transition from pre-appointment cover with no gaps in protection
- Open cover premiums maintained in line with pre-appointment costs despite the insolvency situation
- Comprehensive coverage for the listed building, spa facilities, golf course and trading operations
- Proactive risk management that satisfied both administrators and secured lenders
- Clear and timely cost reporting that facilitated accurate creditor reporting
- Successful conclusion of the administration with all insurance obligations met
The administrators were able to focus on the trading operations and sales process, confident that insurance matters were being managed professionally and cost-effectively.
"Trading administrations for hospitality properties require sophisticated insurance solutions that balance comprehensive protection with cost efficiency. The listed building elements added further complexity, requiring specialist underwriting support to ensure adequate reinstatement values whilst maintaining competitive premiums."
Why should I instruct Eddisons for hotel and hospitality insolvency insurance?
When you instruct us for hospitality property insurance during insolvency appointments, you benefit from our extensive experience in this specialist sector. We understand the unique risks of trading hotels, including food safety, licensing, guest safety and listed building considerations.
Our 180 years of industry experience and partnership with Allianz, the world's largest insurer, ensure you receive both specialist expertise and financial strength. Our teams are RICS-certified and have managed insurance for numerous insolvencies across the UK.
Get hotel insolvency insurance support today
We are here to provide insurance solutions for your hospitality administration, receivership or liquidation appointments. Please call 0113 283 2489 or complete the form below to get started now.
