Running a bed and breakfast is personal. Your property is often your home, your livelihood, and your guests’ home away from home, all at once. The John Bailey Company specializes in insurance for B&B owners, helping you protect every part of your business with coverage designed specifically for the hospitality industry.
Since 1946, we have been a family-owned insurance agency based in Knoxville, Tennessee. We currently insure hospitality and recreation businesses in 20+ states. We understand the unique risks that come with welcoming guests into your property, and we know how to protect you from them.
Bed and Breakfast Operations We Insure:
- Traditional bed and breakfast inns (4 to 12 guest rooms)
- Historic home B&Bs and heritage properties
- Country inns and boutique lodging
- Farm stays and agritourism bed and breakfasts
- B&Bs offering on-site activities (fishing, hiking, horseback riding)
- Properties with event hosting or wedding venues
- Seasonal and year-round operations
- Owner-occupied and manager-operated properties
Why Your Homeowners Policy Won’t Protect Your B&B
Most standard homeowners insurance policies contain exclusions for commercial activity on your property. Once you begin accepting payment from guests, your homeowners coverage may not respond to business-related claims. For example, if a guest is injured on your stairs or experiences a foodborne illness from breakfast service, a homeowners carrier could deny the claim, potentially leaving you personally responsible for medical costs, legal fees, and settlements. We recommend reviewing your current homeowners policy with a licensed agent to identify any commercial activity exclusions.
Bed and breakfast operations typically require a commercial insurance package built for hospitality businesses. Coverage is generally designed to address common exposures, including but not limited to guest injuries, food service liability, property damage to furnishings and the structure itself, and business income loss if you’re forced to close temporarily. All coverage is subject to policy terms, conditions, limits, and exclusions — a licensed agent can review your specific operation to recommend the right protection.
What Does Bed and Breakfast Insurance Cover?
A comprehensive B&B insurance program from the John Bailey Company can typically be customized to include a range of coverages designed for hospitality operations. Available options generally include, but are not limited to, the following:
Standard Coverage Options:
- General Liability: Generally responds to guest injury claims such as slips, falls, and similar accidents, along with third-party property damage claims
- Commercial Property Insurance: Designed to help protect the physical structure of your B&B, furnishings, equipment, and business personal property against perils such as fire, theft, storms, and vandalism
- Business Interruption / Loss of Income: Helps replace lost revenue and cover ongoing expenses like mortgage payments, utilities, and payroll when a covered event causes a temporary closure
- Food-Related Liability: Generally responds to claims arising from foodborne illness or allergic reactions experienced by guests
- Workers’ Compensation: Required in most states for B&Bs with employees; helps cover medical costs, lost wages, and legal defense for work-related injuries or illness
- Umbrella / Excess Liability: Provides additional liability limits above primary policy limits, often available up to $2 million or more
Specialty Coverage Options:
- Liquor Liability: Often essential when wine, beer, or cocktails are served to guests, including complimentary service
- Innkeeper’s Liability: Generally responds to loss or damage to guests’ personal property while on your premises
- Cyber Liability: Helps address exposures related to data breaches involving guest payment information and online reservation systems
- Equipment Breakdown: Designed to respond to losses involving commercial kitchen appliances, HVAC systems, and other mechanical equipment
- Hired & Non-Owned Auto: Generally responds to liability exposures when personal vehicles or rentals are used for B&B business, such as guest shuttles or supply runs
- Event Liability: Additional coverage option for B&Bs that host weddings, retreats, or private events
- Historic Property Endorsements: Specialized coverage designed for older or historically significant structures with unique rebuilding considerations
All coverages, limits, and availability are subject to policy terms, conditions, and exclusions, and may vary by carrier and state. A licensed agent can review your specific B&B operation to recommend appropriate coverage.
Our Process
Our process is simple. Here is how we work:
1) We Learn About Your Business
First, we discuss your bed and breakfast operation and craft a risk management solution tailored to your needs.
The following includes a few of the standard questions we typically ask during your initial consultation:
- How many guest rooms do you have, and what is your maximum occupancy?
- Is the property your primary residence, or is it manager-operated?
- Do you serve meals or alcohol to guests?
- Is the property a historic building or a newer construction?
- Do you offer any on-site activities or excursions (hiking, fishing, tours)?
- Do you host events such as weddings, retreats, or corporate gatherings?
- How many employees or contractors do you have?
- Do you use an online booking system that collects guest payment information?
- Have you filed insurance claims in the past? If so, what risk management practices have you put in place to prevent future incidents?
- Are there any seasonal factors that affect your operations?
2) We Shop the Insurance Companies
After learning more about your insurance needs, we shop the insurance companies for you and then present a menu of recommended plans for your review.
Once you pick the coverage options that align with your risk appetite, our team can deliver a certificate of insurance to you quickly to ensure your business is protected.
Ready to get started? Schedule a free consultation or call us at (865) 524-0785.
Frequently Asked Questions About B&B Insurance
How much does bed and breakfast insurance cost?
Insurance costs vary based on guest capacity, location, property characteristics, claims history, and selected coverage limits. While premiums for smaller B&Bs are often lower than those for larger inns, every operation is unique and pricing can vary significantly based on individual risk factors. The best way to get an accurate estimate is to schedule a free consultation with our team.
Do I need insurance even if my B&B is seasonal?
Yes. Whether you operate year-round or just during peak tourist season, your property remains exposed to risks like fire, storms, vandalism, and liability claims. Gaps in coverage can leave you unprotected during the off-season when your property is still at risk. We can help structure a policy that accounts for seasonal fluctuations in your operations.
Does my B&B need liquor liability insurance?
If you serve, sell, or allow guests to consume alcohol on your property, liquor liability insurance is strongly recommended and even complimentary wine at check-in can create exposures. In many states, businesses that provide alcohol may be held liable.
What if my B&B is in a historic building?
Historic properties present unique insurance challenges. Rebuilding costs for historic structures can be significantly higher than standard construction due to specialized materials, craftsmanship, and preservation requirements. Standard commercial property policies may not provide adequate coverage. We work with carriers that offer historic property endorsements to ensure your building can be properly restored after a covered loss.
Is my Airbnb or vacation rental covered by this type of policy?
It depends on your operation. If you provide breakfast service, maintain multiple guest rooms, and operate as a traditional B&B, you need a commercial hospitality policy. Airbnb’s Host Protection programs provide some coverage, but they do not replace commercial property insurance, professional liability, or business interruption coverage. We can help you understand the gaps and build the right protection plan.
Can I get a certificate of insurance quickly for my B&B?
Yes. In most cases, we can deliver a certificate of insurance within one business day after coverage is bound. This is important for B&B owners who need proof of coverage for permitting, bank requirements, or booking platforms.