Liability Insurance

Answered!
Kathleen195
Level 2
West Hollywood, CA

Liability Insurance

What happens in the event that an airbnb rentor/client has a liability cliam that exeeds the property owneres policy limits? Or if the property owner's insurance lapsed or was cancelled.

Airbnb must carry some type of excess insurance coverage but nobody seems to know much about it.

I know airbnb offers a $1,000,000 blanket policy but I'm told it has a lot of exclusions & exceptions. What if someone has a multi million dollar claim?

I really appreciate any help you can offer.

Thank You

Kathy

 

1 Best Answer
David126
Level 10
Como, CO

I missed this thread but most unlikely ABB, a Booking Agency could be held liable, if they were included in any action no doubt their Lawyers would seek exclusion, anyway the AirBnb lawyers would obviously be there to protect AirBnB.

 

I do not know the details of AirBnB's own coverage, no doubt it is substantial, but they are also a major company and could no doubt self fund such issues anyway, most Hosts can not.

 

To answer the question lets assume there is a valid situation, Host is liable and a judgement is awarded then once any Insurance cover is exhausted Hosts assets come into play and if they are not sufficient end result will be Bankruptcy.

David

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19 Replies 19
Alec17
Level 3
Boulder, CO

Homeowners policies most likely won't cover hosts in the case of a liability claim from a guest so it makes no difference whether the policy has lapsed or been cancelled. Hosts who have not purchased additional insurance to cover business activities are most likely uninsured and relying solely on Airbnb's Host Protection Insurance  for liability coverage and Host Guarantee for property damage. 

 

Should a guest choose to sue due to an incident that occurs while renting property via Airbnb, their lawyer will primarily go after Airbnb though the property owner will almost certainly be named as well. Airbnb knows this and hence the reason for them providing the Host Protection Insurance which covers all defendants but has only one named insured - Airbnb. Airbnb wants to control these lawsuits and for good reason, the negative publicity could hurt their business. 

 

The coverage provided by Airbnb is actually quite broad, as broad as the liability coverage provided by any homeowners policy. It also removes the business activity exclusion that is present in almost all home insurance policies. It's also primary insurance so even if a host were to have a policy that covers business liability, Airbnb's policy would most likely be the first to respond. 

 

However, it does only provide $1 million in coverage. This amount should be more than enough for most hosts but if your net worth is significantly higher than $1 million, you probably want to protect your assets with an excess liability liability policy or personal umbrella policy. Just make sure it covers business liability risk. 

 

Here's a more detailed overview of insurance works in such a situation: What Happens When an Airbnb Guest is Injured on My Property

@Alec17  Thank you so much for your posting.  Your posting and the link you provided had the best explanation of liability and property damage I have seen on this site.

 

@Kathleen195  Very smart of you to inquire about this important business issue!

Thank you as well,

You really understand liability insurance in regards to airbnb.

Kathy

Alec, where is that page?

And, can you provide more detail?

I'd like to only have‎ Liability  coverage, I'll take the risk of fire myself.

@Airbnb4

 

This topic is something I am looking into now.  I would like to see the policy information and details about filing a claim - what's covered and what isn't.  Should I be shopping for additional insurance?  The link (above) What happens when . . . is not going to the source.  Please provide a link or the source. Thank you!

 

Rachel Kyle

Mt. David Home

 

 

when i click on  What Happens When an Airbnb Guest is Injured on My Property i just get page not found??? Cheryl D.

 me too

David126
Level 10
Como, CO

I missed this thread but most unlikely ABB, a Booking Agency could be held liable, if they were included in any action no doubt their Lawyers would seek exclusion, anyway the AirBnb lawyers would obviously be there to protect AirBnB.

 

I do not know the details of AirBnB's own coverage, no doubt it is substantial, but they are also a major company and could no doubt self fund such issues anyway, most Hosts can not.

 

To answer the question lets assume there is a valid situation, Host is liable and a judgement is awarded then once any Insurance cover is exhausted Hosts assets come into play and if they are not sufficient end result will be Bankruptcy.

David
Helen444
Level 3
Hutto, TX

I would lie to know, should I purchase extra insurance above my homeowner's? We are a full service bnb, and live on the property. Also any one know about what the requirements regarding pools?

Helen Harrison-Markow

Hello Helen444.  Please let me know if you would like to discuss your insurance needs.  I am able to help hosts in Texas.  Sean F Murphy Insurance, Worth, IL.

Rick-Perreault-and-Chery0
Level 2
Old Orchard Beach, ME

We  are renting my son's camp through our on Aibnb LLC. He tried to purchase extra liability coverege but insurance company said no go. Need a lease agreement with Airbnb. He needs extra coverage,he is a doctor in the Navy and cannot use camp for another 3 years. Anyone have any suggestions? 

Rhonda139
Level 2
Shelton, WA

So can someone recommend a company that covers Airbnb people in addition to Airbnb.  We have a farm with horses and cows. People love it here.  It seems the Airbnb covering hosts liability in case a guest got hurt is kinda in the gray area.   Surely hosts need to be protected somehow or else hosts would not want to do this.  

@Rhonda139 

Loyds of London.  

Charles-Gene0
Level 2
Gainesville, FL

I have found it impossible to secure liability insurance only.  If someone knows a USA company that will write liability only please post so I can contact them.  I have 4 properties that I need liability for.