BED INSURANCE: Cities commonly protect themselves against...

BED INSURANCE: Cities commonly protect themselves against loss or damages. But in Dana Point, they’re paying to protect against bad times for private enterprise with “bed tax” insurance. The reason: Visitor taxes from the city’s 10 hotels account for one-third of its annual $12-million budget. The new insurance would keep the city’s bed-tax income flowing during hard times, such as the recent flooding, fires, or an earthquake. . . . “Businesses do this kind of thing, but it’s pretty innovative for municipalities,” says Rita Geldert, Dana Point’s finance director.