12 Ways Hotel and Motel Owners Can Lower Their Insurance Premiums

Insurance is one of the largest fixed costs for any hotel or motel, and premiums have climbed for many properties in recent years. While you can’t control the overall market, you have more influence over your own rate than you might think. Underwriters price risk, so the more you can show them that your property is well run, well maintained, and well protected, the better your options.

Here are 12 practical steps Tennessee hotel and motel owners can take to keep premiums in check.

1. Keep Detailed Maintenance Records

Underwriters want to see that roofs, electrical systems, plumbing, HVAC, and fire protection systems are maintained. Keep dated records of inspections, repairs, and replacements. When your roof was replaced, when your electrical panels were updated, and when your sprinklers were last inspected all affect how carriers view your property.

2. Invest in Fire Protection

Automatic sprinkler systems, monitored fire alarms, hard-wired smoke detectors in every room, and kitchen hood suppression systems can significantly improve your property rating. Keep inspection tags current and make sure fire doors close and latch properly.

3. Update Your Roof Before It Becomes a Problem

Roof age and condition are among the biggest factors in property pricing, especially with hail and wind losses rising across Tennessee. A newer roof, or one built with impact-resistant materials, can open up better carriers and lower wind and hail deductibles.

4. Build a Written Safety Program

A documented safety program with regular training reduces workers’ compensation claims, which directly lowers your experience modification factor over time. Focus on the most common hotel injuries: lifting, slips and falls, and chemical exposure in housekeeping and laundry.

5. Manage Your Workers’ Comp Experience Mod

Your experience mod compares your workers’ comp claims to similar businesses. Reporting injuries promptly, offering light-duty return-to-work options, and reviewing your mod worksheet for errors each year can keep your mod, and your premium, down.

6. Reduce Slip, Trip, and Fall Hazards

Guest falls are among the most common hotel liability claims. Use slip-resistant mats at entrances, keep walkways and stairs well lit, repair cracked sidewalks and parking lot potholes promptly, and use wet-floor signs every time floors are cleaned. Document your inspections.

7. Secure Your Pool and Amenities

Pools, hot tubs, fitness centers, and playgrounds carry serious liability exposure. Self-closing, self-latching gates, posted rules and depth markings, working drain covers, and regular chemical testing logs reduce risk and show underwriters that you take safety seriously.

8. Train Staff on Responsible Alcohol Service

If you serve alcohol, responsible server training, ID checks, and clear policies for cutting off intoxicated guests can reduce liquor liability claims and may help your pricing with some carriers.

9. Strengthen Security

Good exterior lighting, security cameras covering entrances and parking areas, electronic key card systems that can be rekeyed instantly, and clear procedures for room key requests reduce theft, assaults, and the liability that can follow.

10. Raise Deductibles Strategically

A higher property deductible can noticeably lower premiums. The key is choosing a deductible you could comfortably pay out of pocket, and handling small losses yourself so your claims history stays clean.

11. Get Contracts and Certificates From Vendors

Require contractors, landscapers, pool service companies, and other vendors to carry their own insurance and name your business as an additional insured. Strong contracts shift risk away from your policy when a vendor causes an injury or damage.

12. Shop Your Coverage With a Hospitality-Focused Agent

Not every carrier wants to insure hotels, and pricing varies widely among those that do. An independent agent can present your property to multiple hospitality-focused carriers, highlight your risk improvements, and make sure you’re not paying for coverage you don’t need or missing coverage you do.

How Underwriters Look at a Hotel

It helps to know what carriers weigh when they price your property. The biggest factors are usually building age, construction type, and protection class (how close you are to a fire station and hydrant); the age and condition of the roof, electrical, plumbing, and HVAC systems; sprinkler and alarm protection; amenities such as pools, bars, and restaurants; your claims history over the last three to five years; and how professionally the property is managed. Every item on this list that you can document in your favor helps your agent negotiate.

Report Accurate Revenue, Payroll, and Values

Many hotel policies are rated on gross sales, room revenue, or payroll, and property premiums are based on building and contents values. Overstating these numbers means overpaying, while understating them can lead to an audit bill or, worse, an underinsured claim. Review the exposures on your policy at every renewal and update them when your business changes.

Bundle Coverages Where It Makes Sense

Placing property, general liability, liquor liability, and business income with the same carrier in a hospitality package can lower the overall cost and eliminate gaps between policies. Smaller properties may qualify for a business owners policy that combines the core coverages at a lower price. Larger properties can still benefit from packaging, while keeping specialty coverages like cyber or employment practices with carriers that do them best.

Start Your Renewal Early

Begin the renewal process 60 to 90 days before your policy expires. Early submissions give your agent time to gather updated information, present improvements to underwriters, and shop the market if needed. Last-minute renewals leave little room to negotiate.

Start With a Coverage Review

Small improvements add up, and they matter most when an underwriter can see them. Contact Ace Insurance Consultants to review your hotel insurance program and find out where your property can save.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.