Airbnb will roll out a $1 million insurance program designed to address liability concerns about its business, which helps connect homeowners and renters around the world with travelers seeking a place to stay.
The San Francisco-based online marketplace announced the launch of its Host Protection Insurance in a Nov. 20 blog entry on its web site.
Airbnb did not disclose the insurer or broker behind the policy. It is designed to launch in the United States on Jan. 15, 2015, with the ability to cover up to $1 million in claims. Airbnb said it hopes to expand the policy for hosts at other participating locations globally.
Airbnb explains on its website that the program is designed to cover U.S. hosts and their landlords, where applicable, if a guest faces an accidental injury on that property. The policy would also cover host for some third-party property damage claims, Airbnb said.
If hosts have other property/casualty policies in place, Airbnb’s insurance would be secondary to that insurance, Airbnb said. It can also serve as primary insurance for qualifying events if no other insurance is in place.
There are, of course, limitations. The coverage plan would be subject to a $2 million cap per listing location and have other conditions, limitations and exclusions.
Airbnb noted that it already gives both hosts and guests information and advice on how to make both their listings and experience safe and secure.
Airbnb also offers participating hosts up to $1 million in reimbursement for damage to eligible property in certain countries.