Hotels are plentiful in Tennessee, and every one comes with a unique set of business risks. Customers can get injured on your premises, and your building and other physical assets can be damaged by fire, severe weather, theft, or vandalism. 

The only way to ensure that you can repair, rebuild, and continue to operate in these situations is to purchase Tennessee hotel insurance. For hotel owners, that means a comprehensive set of business insurance policies and endorsements that directly address all of your unique risks. 

What Is Hotel Insurance?

Hotel insurance is a specific type of business insurance that is designed to meet the unique needs of hotels in Tennessee. It is typically a package of several policies that cover property damage and lawsuits, allowing you to focus on running your business and serving your customers. 

Most hotels in Tennessee need commercial property insurance and commercial liability insurance at a minimum. But not every risk you face is covered by these basic policies. You’ll likely need to purchase a variety of additional Tennessee business insurance policies to make sure that your hotel is protected from the numerous property losses and claims of negligence that can arise as a result of your operations. 

What Does Hotel Insurance Cover in Tennessee?

Hotel insurance should cover the unique risks you face in your hotel. This includes physical damage to your building or property as well as your responsibility to financially compensate any customers or members of the public who get injured on your property or as a result of staying in your hotel.

With a few commercial insurance policies, you can begin to build a comprehensive Tennessee hotel insurance program.  

Commercial Property Insurance for Tennessee Hotels

Your hotel is filled with furniture, electronics, décor, carpeting, and amenities. Property insurance helps you rebuild or make repairs when an unexpected event — like a fire, a flood, hail, lightning, or a tornado — destroys your hotel and anything inside of it. It helps you replace, rebuild, or repair commercial property after covered event. 

Business Interruption Coverage for Tennessee Hotels

Business interruption coverage compensates you for lost business income and pays for operating expenses if you must temporarily close after a covered loss (e.g., a fire damages your office and part of the lobby, and you must close your hotel during the rebuilding process). It is usually included as part of your commercial property policy. 

Commercial General Liability (CGL) Coverage for Tennessee Hotels

General liability insurance covers claims brought against your business due to negligence on the part of you or your employees. If one of your guests is injured while staying in your hotel or as a result of your operations, your CGL policy pays for medical bills and other expenses for the injured party. If you are sued, it pays for your legal defense, court costs, and any settlements or judgments that you must pay. 

You may be able to bundle your basic property and liability coverage together into a packaged policy (business owners policy, or BOP) designed for hotel owners. 

What Does Hotel Insurance Not Cover in Tennessee?

Your basic commercial property and commercial liability policies offer very broad coverage that protects you in a wide range of circumstances. But they don’t cover anything, and in fact, both exclude coverage in certain areas where you may have serious exposures. 

If, for example, you have business-owned autos, your general liability policy will not cover any injuries or damage caused by an auto accident involving one of your vehicles. You’ll also need to purchase coverage for worker injuries and employment-related lawsuits. 

Fortunately you can purchase a wide range of additional stand-alone policies or policy endorsements (add-ons) to make sure you are protected from situations that are excluded from coverage or not sufficiently covered under your basic property and liability policies. 

Commercial Umbrella Insurance for Tennessee Hotels

Commercial umbrella insurance essentially increases the limits of several of your other liability policies, including your CGL policy and your commercial auto insurance policy. That way, if you experience a claim in which the financial payout exceeds the limits of your underlying policies, you won’t be forced to pay for the rest out of your own pocket. So if a customer injury in your hotel leads to an expensive lawsuit that exceeds the limits of your commercial general liability policy, your commercial umbrella policy kicks in with higher coverage limits. 

Commercial Auto Insurance for Tennessee Hotels

Many hotels offer limo or shuttle service to transport guests around town or to and from the airport. Commercial auto insurance ensures that you’ll be able to pay for any physical damage or injuries caused by one of these vehicles. 

Workers’ Compensation Coverage for Tennessee Hotels

Workers’ compensation insurance is required for any business in Tennessee with five or more employees. It protects your workers from the costs of work-related injuries and illnesses.

Crime Coverage for Tennessee Hotels

Crime coverage protects your business if an employee or a group of employees engage in theft, forgery, or fraud that damages your business. 

Employment Practices Liability Coverage for Tennessee Hotels

Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices. Employment-related claims are typically excluded from CGL policies. 

You might need several other policies or policy endorsements to fill gaps in your standard commercial property and liability policies. Ask your independent insurance agent about your need for:

• Liquor liability insurance
• Premises pollution liability insurance
• Cyber liability insurance
• Equipment breakdown insurance
• Food contamination and spoilage coverage
• Utility interruption coverage
• Hotel guest relocation coverage
• Event cancellation insurance

How Much Does It Cost to Insure a Hotel in Tennessee?

The cost to cover your Tennessee hotel with a comprehensive business insurance program will vary depending on: 

• The size of your hotel
• The location of your hotel
• The number of employees you have
• The value of your commercial property, including the building and all of your furnishings, artwork, décor, restaurant equipment, etc. 
• Whether or not you have an onsite swimming pool (greatly increases your liability risk)
• The types of coverage and the coverage limits that you require
• The crime and weather risk in your city

An independent insurance agent can help you find the right mix of coverage and value for your unique needs and budget. 

How Can an Agent Help Me Insure a Hotel in Tennessee?

An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need for your Tennessee hotel. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice. 

Isn’t that better than going it alone or shopping online? Our agents simplify the search process for finding the right coverage for your Tennessee hotel. They’ll walk you through the handpicked policy options and explain the details and options.

Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.