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General Liability Insurance for Airbnb Businesses 

If you are renting a property as an Airbnb host, you will definitely require ownership of general liability insurance for you and your business. While hosting can be a great channel of supplemental income, there are posed risks associated. In 2015, a Calgary family returned to their home, which was trashed, racking up damage that was estimated as more than $50,000. Fortunately, they were reimbursed through their insurance, which offered protection coverage of up to $1 million.

Owning the right commercial general liability insurance as an Airbnb host that may cover your business for financial burdens that may arise will give you a piece of mind. You definitely wouldn’t want to be in the same position as the Calgary family mentioned above.

What Is General Liability Insurance? 

General liability insurance (CGL) can also be referred to as commercial insurance or liability insurance. It’s a commercial business coverage policy that the most basic insurance that a business should own.

General liability insurance is the basic type of protection all business must own. It covers any costs that are associated with lawsuits brought to your company along with the payout of any losses. More specifically, general liability insurance may protect your business from the following:

  • Third-party lawsuits
    • Bodily Injury (e.g. a renter is walking through your Airbnb property, falls and hurts themselves).
    • Property Damage (e.g. someone renting your unit damages the sliding door to the terrace and now, it no longer closes).
General liability insurance can give you a peace of mind so that running an Airbnb business is less stressful.
Commercial general liability insurance can give you a peace of mind so that running an Airbnb business is less stressful.

 

As an Airbnb business owner, you know how important owning general liability insurance is. Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 


“I have home insurance—why do I need commercial general liability insurance?”

It’s important to understand that even if you have home insurance for the property you are hosting through Airbnb, you are still required to have commercial general liability insurance to protect your property. Your home insurance can not be used to protect any injuries or damages as a result of hosting your property as it’s business-related.

It is also important to note that if you are renting out a condo suite, the Condominium Corporation requires anyone renting their unit to get a minimum policy coverage of $5 million.

Other Commercial Business Insurance Policies That Airbnb Hosts Should Consider 

There are several common coverages that you should consider as an Airbnb host. These are additional insurance coverage options that aren’t covered under commercial general liability insurance:

  • Business Interruption Insurance 
    If you rent an office for your business and a flood destroys your work space, business interruption insurance may cover the costs associated with loss of income due to operations put to a halt.
  • Legal expense insurance
    This type of insurance policy may cover legal costs allotted to defend your legal rights. This is especially targeted toward some claims relating to employment disputes, legal defence, contract disputes & debt recovery, statutory license protection, property protection, bodily injury and tax protection. (e.g. a former employee files a lawsuit against your company for wrongful dismissal. This policy will cover the cost of legal expenses).
  • Loss income insurance
    If you rent out your property and a flood occurs, commercial general liability insurance covers the damage but doesn’t cover any loss of income accrued while the damage is being report. This is where loss income insurance would kick in. Remember, home insurance does not cover anything while the property is used for business purposes.

How Much Does Commercial General Liability Insurance For Airbnb Hosts Cost? 

Typically, the cost of general liability insurance coverage can cost anywhere between $500-800 but can depend on the nature of your business and the level of risk it has. We encourage you to visit us online to get your free quote online for commercial general liability insurance for your Airbnb business.

We make getting a commercial business insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. Get an estimated quote in under 5 minutes!

Don’t miss another project opportunity. Get your FREE quote online for general liability insurance for your Airbnb business. 

What Kind Of Information Do I Need To Get a Quote For Commercial General Liability Insurance as an Airbnb Host? 

Some wise advice? To save yourself some time, it’s is a good idea to do some digging and gather some pertinent business information about you or the your company before requesting a quote.

Another great idea is to put together a list of questions beforehand so that you don’t forget what to ask once you get to speak to a broker about your options for general liability insurance coverage. Think about the possible risks that you or your company can face when operating your business.

Here’s a list of several types of information about your business that you’ll need to gather in preparation for your search:

  • Name of your company
  • Address (and locations if applicable)
  • Revenue—this is a driving factor for your policy premium
  • Your company structure—(i.e. sole proprietorship, corporation, partnership, joint venture or franchise?)
  • The date that your company was established
  • Is your company registered in Canada?
  • What is the number of employees working for your company?
  • Do your employ subcontractors? If so, how many?
  • Privacy—do you collect private information (e.g. customer data, financial information). What measures do you take to protect this information?

Having this information will make requesting a quote easy and fast—whether it’s online, over the phone or in person, and will likely prompt more questions to ask!

A beautiful Airbnb rental property overlooking the lake from the kitchen.
A beautiful Airbnb rental property overlooking the lake from the kitchen.


Summary—What Have We Learned About The Importance of Commercial General Liability Insurance for Airbnb Hosts?

  • General liability insurance (CGL) can also referred to as commercial insurance or liability insurance. It’s a commercial business coverage policy that the most basic insurance that a business should own to cover third-party lawsuits (bodily injury and property damage).
  • Simply owning home insurance will not cover your Airbnb rental property. You will need to get commercial general liability insurance to cover any costs associated with business-related situations.
  • While Airbnb offers host insurance at for coverage of up to $1 million, the Condominium Corporation requires that you have coverage for up to $5 million.
  • While being an Airbnb host can be financially rewarding, there is still associated risk which is why commercial general liability insurance is required.
  • There are different types of commonly used commercial business insurance policies that Airbnb hosts should consider—business interruption insurance, property insurance, legal expense insurance and loss income insurance.
  • Be prepared when you’re looking for an insurance quote. Put together a list of questions to ask so that you don’t forget to address them, should you decide to speak to a broker about your options! We’ve put together a list of pertinent information that will likely be asked of you which will save you time.
  • The cost of commercial general liability insurance coverage for airbnb hosts can range anywhere between $500-800 but can depend on the nature of your business and the level of risk it has. We encourage you to visit us online to get your free quote online.

Looking for general liability insurance to protect your Airbnb business? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

List of Resources for Airbnb Business Owners

Below are some valuable websites for all contractors working in the trades—it’s a good idea to bookmark them for future reference! If there are any awesome resource you think we should be sharing, send an email to us at content@zensurance.com.

Guides

Tips, Tricks and How-Tos

Legal & Regulatory 

City Regulations

Media & News 

 

Are you hosting an Airbnb property? Looking for commercial business insurance protection? Get your FREE quote online

At Zensurance, we make getting a commercial business  insurance quote easy. Our hassle-free, easy to use and no-jargon tool walks you through the entire process. 

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