Hotel insurance news - Fears that rising waters will raise premiums

Hoteliers in flood-hit Cumbria are calling on the Government to do all within its power to ensure that hotel insurance costs do not rise to unmanageable levels as a result of the extreme flooding.

One hotel insurance holder, who has suffered £2 million material damage and £250,000 lost earnings as a result of business interruption caused by the flood, told The West Moorland Gazette, "The insurance company has so far acted very speedily, but I think we're going to be looking at a rise in insurance even though this was a freakish occurrence."

Spokespeople from another prominent Cumbrian hotel insurance client, have echoed this view: "We're looking for as much pressure from the relevant bodies as possible to make clear to insurance companies that this was an extreme, one-off event."

However they seemed to undermine this position when adding, "We are a bit apprehensive about insurance in the coming years if the lake continues to rise."

The call for a sympathetic approach from insurers has been made by other businesses too.