Factors That Affect Your Level of Risk for Owning a Motel

Factors That Affect Your Level of Risk for Owning a Motel

One of the best ways to determine how much you’ll have to pay for hotel insurance in Knoxville, Tennessee is to know the number of risk factors your hotel presents. Be sure to alert your insurance provider if you plan on making changes to your hotel or how you operate your hotel in case you need to alter your policy to minimize your risk.

Common Risk Factors

Some of the more common risk factors that determine your coverage and cost for hotel insurance in Knoxville, Tennessee include:

  • Your turnover rate
  • Number of rooms
  • Food served
  • Size of your staff
  • Type of events held at your hotel

Special Circumstances

You may not consider your holiday home or the second home you occasionally rent out to be a hotel, but you’ll need a special type of insurance policy to protect yourself and your residence. The same rules apply to small country inns and bed-and-breakfast establishments. While these businesses don’t offer the same services or handle the same number of guests as traditional hotels, they do need special insurance policies. One of the great things about policies for bed-and-breakfast establishments and country inns is that coverage usually isn’t very expensive when compared to standard hotel insurance.

Talk with your hotel insurance agent about any special risk factors your hotel, holiday home or county inn may have. Not knowing you needed a specific type of coverage may not protect you from financial ruin or bankruptcy.