coverUPS

1
coverUPS

• the building component that pays for itself

p e r f o r m a n c e p r o t e c t i o n v a l
u e
cvrups.com Patent pending
2
anatomy of a losswhat happens ?
coverUPS

• Guest enters room, unpacks and at some point
• during stay hangs clothing on sprinkler head
• Fusible link damaged
• Flow valve opens, water discharged
• Physical damage sustained in one room (minimum)
• Fire Alarm system triggered
• Hotel evacuated, Guest population disturbed
• Insurance Carrier notified, initiating claim
  process
• Hotel staff occupied by coordination of
  restoration
• Physical Restoration process begins
• Room(s) revenue loss begins
• Room(s) restored to operation (2 week minimum)

cvrups.com Patent pending
3
policy deductibleper incident basis
coverUPS

• Typically variable by policy type, generally a
• percentage of stated property value (2 - 5)
• Deductible amount generally not exceeded by
  single
• room restoration cost
• Actual reimbursement through claim is minimal
  after
• deductible application
• Claim processing and follow up costs for hotel
  staff
• typically not included in loss calculation.
• End Result net financial loss to Owner

cvrups.com Patent pending
4
room reconstruction costper incident basis
coverUPS

• Budget 16,000 average
• Intermediate 20,000 average
• Luxury 24,000 average
• Emergency water extraction
• Removal of damaged furniture and lighting
• Removal of soft goods and artwork
• Removal of wall finishes
• Ordering of replacement materials
• Installation of new finishes and soft goods

Every time the sun comes up, youre spending
money
cvrups.com Patent pending
5
business interruptionloss of revenue
coverUPS

• Assume 14 day downtime (1 room)
• budget 1,680 - 2,030
• double 120 / night
• king 145 / night
• intermediate 2,100 - 2,450
• double 150 / night
• king 175 / night
• luxury 2,800 - 5,600
• double 200 / night
• king 250 / night
• suite 400 / night

Every time the sun goes down, youre losing
money
cvrups.com Patent pending
6
total restoration costtangibles and intangibles
coverUPS

• Business Interruption Restoration
• budget 18,780 average
• intermediate 23,240 average
• luxury 28,725 average
• Intangible Effects
• Negative guest experience
• Damage to guests personal property
• Loss of future reservations
• Staff time spent on recovery tasks
• Installation of protective measures

cvrups.com Patent pending
7
what are coverUPS?a device for preventing
sprinkler tampering
coverUPS
Adhere trim ring to wall, magnetically attach
coverUPS
cvrups.com Patent pending
8
what are coverUPS?in-service advantages
coverUPS

• Easy Installation by hotel maintenance personnel
• Easy removal for sprinkler system servicing
• Full access to sprinkler head assembly
• No retrofit to finishes required
• Easy to re-install

The effect of coverUPS out of sight, out of
mind
cvrups.com Patent pending
9
cost of coverUPSin existing construction
coverUPS
Average heads per room 3 Cost of coverUPS (base
model) 15 each Number of rooms 200 Number of
covers required 600 Cost of purchase
9,000 Cost of installation 0 (hotel
maintenance staff wage part of operating
cost) Single Incident Restoration Cost (low)
17,680 Net cost of coverUPS is half the cost of
a single incident Cost of coverUPS less than
75 per room
cvrups.com Patent pending
10
cost of insurancefrequency of occurrences and
their impact
coverUPS

• Average Frequency of accidental discharge in U.S.
• 4,000 rooms annually
• As frequency of occurrences increase, Carrier
  risks
• increase and therefore premiums increase
• Frequency of loss negatively influences policy
  renewal terms and negotiating position
• 4,000 x 18,780 75,120,000
• (annual loss)

cvrups.com Patent pending
11
cost of insurancepotential for premium reduction
coverUPS

• Increased protection against sprinkler
• tampering may mean a premium reduction
• leading to
• Reduction in capital costs for restoration
• Overall operating cost decrease
• Long term revenue increase

cvrups.com Patent pending
12
cost recoverytax application
coverUPS
coverUPS treated as furnishing depreciation
occurs over 5 years coverUPS treated as
equipment immediate recovery of full cost
through expensing in single tax year coverUPS
investment cost is quickly recovered
cvrups.com Patent pending
13
who wins ?end game analysis
coverUPS
Owner - Operator / Corporate Reduction of
Incident Rate Retrofit Costs Reduction of
Business Interruption Costs Reduction of
Incident-related Staff Time Insurer Reduction
of Claims Cost Outlay Reduction of
Incident-related Staff Time Reduction of Policy
Renewal Risk Sprinkler Vendor Reduction in low
value, low profit emergency response calls
cvrups.com Patent pending
14
coverUPS

• Daniel A. Neeb, RA
• foundingPRINCIPAL
• Thomas P. MontAlto, RA
• foundingPRINCIPAL

cvrups.com Patent pending
15
coverUPS

• the building component that pays for itself

p e r f o r m a n c e p r o t e c t i o n v a l
u e
cvrups.com Patent pending