If Insurance Companies Deny Coverage For Cuba, Travel and Commerce Will Be Crippled.
/If Insurance Companies Deny Coverage For Cuba, Travel and Commerce Will Be Crippled.
Potentially, the most commercially consequential impact of the decision by the Trump Administration, specifically the United States Department of State, to issue a warming relating to travel to the Republic of Cuba by individuals subject to United States jurisdiction is upon insurance.
An insurance company may use the warning as a basis for reducing or eliminating or denying coverage to individuals, aircraft, vessels, and businesses (hotel management companies, tour operators, travel agents, etc.) with any connectivity relating to the Republic of Cuba. For publicly-held companies, this is immensely problematic.
An insurance company may prohibit individuals subject to United States jurisdiction from residing at the NH Capri, which is managed by Madrid, Spain-based NH Hotel Group and owned by Republic of Cuba government-operated Grupo Caribe. And, there may be an extension to other properties managed by NH Hotel Group and, separately, those owned by Grupo Caribe, which would include the Hotel Nacional de Cuba in Havana among others.
If this happens, existing commercial and economic activity between the United States and the Republic of Cuba would be reduced to a flicker…. and potentially extinguished.
