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That business already exists: it's called the insurance industry. I'm shocked that AirBnb apparently hasn't availed themselves of it.
by michael_dorfman 15y ago
That business already exists: it's called the insurance industry.
I'm shocked that AirBnb apparently hasn't availed themselves of it.
- deleted 15y ago[deleted]
- michael_dorfman 15y agoIt doesn't matter that Airbnb renters are not businesses. There are a number of ways in which this reduces to an insurance problem. First, Airbnb could purchase liability insurance to indemnify themselves against claims made by people like EJ. This would enable them, under certain circumstances, to make generous payouts on occasion while maintaining fixed expenses. Second, Airbnb could easily offer optional insurance to their customers (in this case, the hosts) whereby a small fee is paid for each night's stay, and damages are paid up to a set amount, with proper documentation. (Naturally, Airbnb would then, in this case, attempt to recover the money from the renter who committed the damages.) I see no legal obstacles to such solutions, nor any reason to think it would be too expensive. Believe me, you can get insurance for pretty much anything, and the rate setting follows predictable patterns. Insurance may very well be the whole answer here, and I imagine we are discussing it because a) Airbnb isn't adequately insured, and b) they screwed up the customer relations/PR side of this one enormously.
- farrel 15y ago"There are a number of ways in which this reduces to an insurance problem." You can't get insurance for an illegal activity. If you're subletting your own rental apartment, or in a jurisdiction with laws against unlicensed short term rentals (like New York City no doubt one of Airbnb's biggest markets) renting out via Airbnb is most probably illegal and no insurance company on the planet will cover it.
- deleted 15y ago[deleted]
- deleted 15y ago[deleted]
- hnal943 15y agoI'm also shocked that EJ did not avail herself of it.
- michael_dorfman 15y agoI'm not sure that a standard homeowner's insurance policy would pay out in a case such as this. Airbnb is putting hosts in the position of a business; one of the services they could (and should) be providing is some form of insurance (for an added fee, of course.)
- hnal943 15y agoJust because homeowner's insurance doesn't provide this type of coverage doesn't mean it doesn't exist. It may be a good idea for Airbnb to attempt to provide this type of coverage. However, whether they offer insurance or not does not change the fact that the risk is the host's to mitigate.