Hotel Insurance Built for the Nashville Area

April 15, 2024 / Distinguished

Nashville, Tennessee, also known as the Music City, attracted nearly 15 million visitors in 2022, each contributing to the city’s vibrant hospitality industry. With visitors spending an estimated $621 per person per visit, the city’s hotels play a pivotal role in accommodating tourists and providing memorable experiences. In 2023 alone, Nashville’s hotels sold close to 10 million rooms, marking a 3.7% year-over-year increase and highlighting the industry’s steady growth. 

Hotels in Nashville require insurance coverage for various potential risks, from unexpected accidents causing property damage or bodily injury on the premises to incidents involving alcohol service that may lead to legal claims, as well as mishaps involving hotel vehicles. 

In this article, we delve into the importance of comprehensive insurance for Nashville hotels, examine the cost considerations, and showcase how Distinguished’s hospitality insurance offerings can provide comprehensive coverage for hospitality businesses in this dynamic and thriving city.

Why Do Nashville Hotels Need Comprehensive Insurance?

Hotels have unique risks that other establishments do not. This means they require insurance policies to cover these potential risks and liabilities inherent in their day-to-day operations.

Water and Fire Damage

Water and fire damage pose significant threats to Nashville hotels, potentially causing extensive property damage, business interruption, and financial losses. 

Whether from burst pipes, faulty electrical wiring, or kitchen fires, these incidents can disrupt hotel operations and lead to costly repairs. A comprehensive insurance policy is essential to cover losses from these kinds of unforeseen events.

Accidents on the Property and Around the Pool

Accidents frequently happen on hotel premises and around pool areas, resulting in potential bodily injury and property damage. Anything from a slip-and-fall to an unforeseen accident can lead to liability risks for hospitality business owners and operators. 

Comprehensive liability coverage protects against third-party claims, medical expenses, and legal costs associated with these kinds of accidents, safeguarding the hotel’s finances and reputation.

Cyber Threats

Hotels, like any other business with a digital component, are vulnerable to cyber threats such as data breaches, ransomware attacks, and network intrusions. 

These incidents can compromise sensitive guest information, disrupt operations, and result in financial losses. Cyber liability insurance is crucial for hotels to mitigate the risks posed by cyber threats, covering expenses related to data recovery, legal fees, and regulatory fines and helping to restore customer trust and confidence.

Car Theft and Accidents

Vehicles at a hotel are susceptible to theft, vandalism, and accidents, posing financial risks to hotels. With the proper coverage, both guests’ property parked on the premises and hotel-owned vehicles are protected against losses resulting from car theft, property damage, or bodily injury. 

Adequate coverage can help hotels mitigate the financial impact of such incidents and ensure the smooth operation of transportation services.

Fights and Damages Caused by Over-Served Guests

Hotels also require coverage options for incidents involving fights, altercations, or property damage caused by over-served guests. From injuries sustained during altercations to damages to hotel property, these incidents can lead to costly legal claims and reputational damage. 

Liquor liability insurance is essential for hotels to mitigate the risks associated with alcohol service. It provides coverage for third-party claims, legal expenses, and settlements and protects the hotel’s financial interests.

How Much Does Hotel Insurance Cost in Nashville?

The cost of hotel insurance varies significantly based on a number of factors. 

These can include:

Size of the hotel
Amenities
Location
Deductibles

While it’s difficult to provide an exact price point, you can offer your clients rough estimates using historical data and resources like CBRE, which provide information on things like the average cost of hotel insurance based on the percentage of operating revenue.

You can contact one of our insurance experts with your clients’ details to get a more exact quote. 

How Distinguished Can Keep Your Hotels Covered

Distinguished provides comprehensive insurance packages tailored to meet the diverse needs of Nashville’s hotels. Plus, with our expertise and specialized policies, your hotel clients can rest assured knowing that they are well taken care of, even in the case of unforeseen events.

Here are some of the policies we can offer your Nashville hotel clients: 

Hotel Primary Insurance

With over 50 years of experience, Distinguished’s Hotel Primary Insurance Program is the longest-running in the country and is available for various hotel classes, from mid-scale to luxury resorts. Key coverages include:

$1M/$2M limits for GL and Liquor Liability
Property coverage
Broad Form Named Insured coverage 
Crisis Response 
Healthcare Services Extension
Fungi or Bacteria limited exclusion 
HNO/Owned Autos & Garagekeepers coverage 
Includes Innkeepers up to a $1M limit
Catastrophic Management coverage

Put all together, these coverages create an easy, all-in-one solution that will be perfect for the majority of your hotel clients. 

Hotel Umbrella Insurance

Backed by decades of industry expertise, our hotel umbrella insurance provides robust liability coverage with limits up to $150M.

This policy doesn’t just include high limits but also broad follow-form coverages, including for legionella, that your clients will want.  

Plus, for convenient access to umbrella coverage for limited service or midscale hotels, you can also apply completely online through our Express Hotel Umbrella Insurance program.

Cyber Liability Insurance

Distinguished’s Cyber Liability Insurance, underwritten by industry leader Beazley, provides comprehensive coverage and industry-leading services to protect hotels from cyber threats. 

With limits of up to $1M and a low retention starting at $5,000, this type of insurance includes: 

First-party and third-party Cyber Liability
Beazley’s Cyber Breach Response services included for all policyholders
Access to an industry-leading Breach Response Team
Notification Expense covered outside the limit of liability
Business Income and Cyber Extortion coverage available
e-Crime coverages included

Why Distinguished Is the Best Partner for Nashville Hotels

Insurance companies are increasingly turning to Distinguished as a partner for Nashville hotel insurance due to our commitment to convenience, expertise, and robust coverage offerings. When you partner with Distinguished, you not only get access to our insurance programs but also:

Convenience: Our insurance experts make sure that everything from filing claims to submitting business is as quick and painless as possible.
Expertise: Our expertise in underwriting and carrier relationships means we can get your Nashville hotel clients the coverages they need.
Robust coverage: Our policies offer comprehensive protection that’s tailored to the specific needs of hotels across the nation, including in Nashville.

Partner with Us Today

With the bustling Nashville hotel industry drawing millions of visitors annually, finding the right coverage is essential for safeguarding against unforeseen risks. 

If your clients are looking for reliable hotel insurance solutions, partner with Distinguished today. Register with us to get started, and once that’s complete, simply fill out the applicable application forms and submit your business. We can then get back to you with a quote right away. 

Nashville Hotel FAQs

Where do you provide coverage for hotels?

We provide coverage in all 50 states

What is your carrier rating?

A.M. Best rated A or better 

How do I submit my business?

To submit new business, make sure your agency is registered. If not, register your agency.

You can also contact us here if you have any questions.

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Surety, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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