Insurance company AIG plans to stop providing public liability cover for the hotel industry from next year in a move that will leave as many as 50 hotels at risk of not having insurance.
AIG said that it will renew cover for its existing customers in the hotel sector this year, but that it will not in 2020.
The Sunday Times quotes the company as saying, "Due to the increase in claims costs in liability insurance, AIG has suffered significant losses resulting in changes to our risk appetite."
AIG added, "We will keep the situation under review and remain hopeful that ongoing efforts to reduce claims costs will enable us to widen our appetite to a broader number of hotels in the future."
AIG's cover withdrawal is limited to public liability insurance. The company stated that it will continue to provide property and directors' liability insurance to hotels.