Hoteliers Step Behind Shield To Lower Total Cost of Risk

"If hoteliers learned anything from Sept. 11th, it's to plan ahead," said Gail Wilson, Shield VP. "Shield designed a complete on-line risk-management audit, assessment and action plan that will protect properties in the future by implementing common-sense risk-management practices today."

The Shield program includes on-line safety tools, updated risk management manuals, an analysis of the property's work processes, a review of the overall organization and current insurance policies, property claim advocacy and resolution, and the assistance in implementing a new risk-management program system wide.

"Shield differs from other agents and brokers in that we are working with hotels to save money by reducing losses over the short term (one year) and long term (over a five-year period)," Wilson said. "Brokers try to save on the insurance premiums right now, but don't control the loss-control services that will keep the premium down in the long run."

Since its inception in February 2001, Shield has helped hotels save hundreds of thousands of dollars in insurance premiums, and helped to reduce employee injury and Workers' Compensation claims by 30 percent or more:

• The market trend from 2001 - 2002 has been a 50 percent to 100 percent increase in Property Premiums. Shield customers have achieved no more than a 38 percent increase.
• For General Liability Insurance, premiums have increased 100 percent. Hotels working under Shield have experienced no more than a 65 percent increase.
• Deductibles for most properties have doubled, or worse. Shield customers have actually reduced their deductibles.
• Based on a sampling of three hotels, employee injuries were reduced by 42 percent, 38 percent and 33 percent since teaming with Shield.
• Overall, Shield reduced employee injuries at the client hotels by 38 percent since the company was formed in 2001.
• Before joining Shield, a single hotel group spent $1.3 million in Workers' Compensation Claims. In 2000, the same property spent $1.35 million in WC claims. Since the group began working with Shield in 2001, it reduced its WC claims to $710,000 - a 45 percent decrease in one year.

"Simply stated, Shield is the solution for lowering the cost of risk," Wilson said. "With our programs, we can help hotels obtain competitive premiums and policy terms, help them build a persuasive underwriting case, provide Web-based safety and loss control programs and provide educational support for employees at the hotel level."

"The bottom line effect of working with Shield to date has been an estimated 56 percent savings in Workers' Compensation expense from last year, an estimated savings of $340,000 overall." --Chantal Mariotti, Human Resources, Millennium Biltmore, Los Angeles

"Shield has been cost effective because Workers' Compensation claims have become minimal. The safety training for employees provides management with oversight, so we can minimize our exposure to claims on a one-on-one basis." --Scott Grant, General Manager, Four Points Hotel by Sheraton, Buffalo, NY

"Even if SHIELD has been able to get us better insurance rates, what matters most is the responsiveness we have experienced when we have questions. The customer service is far and away better than with any other insurance provider we've had. This is because of the support that Shield offers; how many companies can you call and say, 'I need help with training,' and they show up and spend two days with your employees? You don't get that very often." --Fred Gessner, General Manager, Comfort Inn Vail - Beaver Creek, Colorado

Wilson has been in the insurance and risk-management field for more than 15 years. She directs the risk-management operation for SWAN, representing both managed and equity hotels in the United States. She is responsible for implementing and designing risk-management programs for U.S. hotels that reduced their losses by 60 percent in one year. She is supported by Evelyn Soule, Shield's risk and insurance manager, and a 24-year insurance industry veteran.

"Evelyn has great analytical skills and is able to spot trends in the experience which can have an immediate impact for the client," Wilson said. "Her knowledge has been very beneficial for our clients."

"The Shield team provides a wealth of knowledge in creating and administrating successful insurance programs for multi-unit operations," said Aik Hong Tan, SWAN President. "They have the unique ability to understand the entrepreneurial needs of owners and also communicate with institutional underwriters. Their skill sets go beyond the negotiation of insurance coverage to the ongoing process of managing risk year round so the next year's renewal is a pleasant surprise rather than an annual disappointment. We are fortunate to have this team in place, and hoteliers will greatly benefit from their experience."

SWAN Inc. is a global provider of one-stop shop integrated e-business solutions to hotels, backed by strong customer service levels. The company's core competencies span a comprehensive palette of on-line and off-line hospitality services, including: hotel management, reservation distribution, on-line insurance, risk management, and on- and off-line procurement. In addition, SWAN makes available a host of software products in an affordable Application Service Provider network, delivering property-management, sales-and-catering, yield-management and human resources functionality.

Headquartered in Denver, SWAN Inc. has approximately 2,000 employees and will operate initially in the United States, offering extensive services to the U.S. operations, followed by global operations, of Millennium Hotels & Resorts. Millennium Copthorne Hotels plc, a U.K.-based company, is an investor in SWAN. Hong Kong-based City e-Solutions Limited (CES) is majority owner.