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January 21, 2011 / Brett Cohrs

Not Just for Hotels: Bed Bug Claims & Nonprofits

This story is about a class-action lawsuit against an apartment complex, so I understand if my nonprofit readers do not understand the relevance to their operations.

Many of you should never be affected by bed bug issues. Actually none of you should be so affected, but if you run residential facilities: shelters, group homes, treatment centers, or transitional housing facilities, there’s an outside chance.

As a matter of fact, one of my underwriters expressed concern over insuring residential facilities for that very reason: bed bugs.  That was the first time an underwriter gave pause because of the little mattress dwelling vermin. Usually insurance companies have underwriting guidelines for residential facilities due to the large property exposures or some other reason inherent with the population, i.e. some companies prefer to deal with youth facilities, some prefer elder care.

Bed bug claims can be difficult. I’ve seen carriers pay the claims on behalf of hotels, but any claim involving infestations can present some policy interpretation issues for adjusters.

The recommendation? Never take bed bug issues lightly. Take quick action to eradicate the little buggers. It could save you a world of hurt down the road.

What are some claim examples from your world that you have questions about?

Disclaimer: Note that this and other posts are offered for informational purposes only. Always consult your professional regarding your specific concerns.

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