Middle East: Hotels in region lack supplier liability insurance

Source: Middle East Insurance Review | Jul 2016

Few hoteliers in the region insist on suppliers having liability indemnity insurance before buying from them, according to Hotelier Middle East’s first annual Hospitality Procurement Report.

The lack of such insurance was one of many concerns raised by the procurement professionals surveyed for the report. Best practice for procurement would be ensuring all suppliers that a hotel deals with are adequately covered by liability indemnity insurance, according to some of the experts interviewed in the report. This would protect both supplier and hotel in the event of a problem with the product sold.

More than 45 hotel procurement managers and directors completed the survey between December 2015 and March 2016. Between them, they are responsible for procurement for more than 360 hotels, with two respondents each representing portfolios of over 50 properties. In financial terms, the respondents are collectively responsible for business worth in excess of US$157.6 million annually.

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