Airbnb Services and Insurance: What Hosts Should Know About Increased Liability and Property Risks
Airbnb’s latest announcement has hosts buzzing—and asking big questions. With the Summer 2025 release, Airbnb introduced ‘Airbnb Services,’ a suite of hotel-like amenities designed to elevate guest stays including private chefs, personal trainers, spa treatments, and more, all available to book at short-term rentals. The goal? Bridge the gap between home-like stays and hotel-level convenience.
For guests, it’s an exciting upgrade. For hosts? It’s complicated.
While Airbnb Services promise to enhance the guest experience, it also opens the door to more liability and property risks. Hosts are quickly voicing concerns in online forums and local groups, asking what happens if something goes wrong during one of these services, from injuries and incidents to the increased potential for damages.
And Airbnb’s AirCover, while free to hosts, has critical exclusions—like assault, battery, and invasion of privacy—and broader limitations on damage and liability. In fact, for hosts with six or more listings, Airbnb announced in March that its liability coverage will now take a secondary role to other insurance in place—another sign of how unreliable the platform’s protection really is.
This leaves many hosts in a tricky spot. Say ‘yes’ to services and risk exposure to gaps in standard coverage or opt out and risk losing bookings and potentially see a dip in search rankings on the booking platform.
With these changes, hosts are navigating new questions about responsibility and risk. If a third-party service provider causes an accident or an incident during a guest’s stay, who is ultimately liable and responsible? Whose insurance coverage actually applies?
These questions aren’t just hypotheticals but real and valid scenarios that are already being debated in host communities, with many seeking clarities on what protections are in place and what’s the added benefit of allowing Airbnb Services at their properties. Understanding the fine print and verifying the gaps in your current coverage has never been more important.
What Exactly is Airbnb Services?
Airbnb Services is the company’s latest move to enhance the guest experience by bringing amenities that are commonly offered at luxury hotels to short-term rental properties. While Airbnb has offered “Experiences” for years—think city tours or cooking classes—this new Services feature is focused on personal, in-home offerings that happen directly at the short-term vacation rental property.
At launch, Airbnb Services includes ten offerings:
- Private chefs
- Prepared meals
- Catering
- Photography
- Personal training
- Massage
- Spa treatments
- Hair services
- Nail services
- Makeup services
For Airbnb, it’s a play to meet guest expectations and compete with hotel perks. For hosts, it introduces a new layer of complexity. Even if a host isn’t the one providing these services, the fact that they’re happening on their property raises important questions about responsibility, liability, and protection.
Why Hosts are Concerned About Allowing Services at Their Airbnb
The introduction of Airbnb Services might sound like a win for guests, but for hosts, it understandably raises new concerns. Almost immediately after the announcement, conversations in Airbnb forums and local hosting groups started lighting up—not with excitement, but with questions.
The biggest pain point? Liability.
Understanding Liability with Airbnb Services: Who’s Responsible?
When a third-party service provider enters your property, anything can happen. While Airbnb handles the booking of these services at the request of your guest, the host’s property becomes the stage for any potential accidents and incidents.
Hosts are particularly uneasy because Airbnb’s insurance solution, AirCover, has well-documented exclusions:
- Assault & Battery: Not covered.
- Invasion of Privacy: Not covered.
- Other liability gaps: Services performed by third parties can create new grey areas in coverage from standard policies and Airbnb’s Aircover, especially when AirCover openly acknowledges that they conceal the full list of exclusions.
Consider this scenario: A private chef booked through Airbnb Services drinks on the job, behaves inappropriately, and your guests leave your Airbnb upset. If the guests decide to pursue legal action against the chef, both Airbnb and the host could also be named in a lawsuit. But with AirCover excluding assault and invasion of privacy claims, the host could find themselves without insurance protection.
Airbnb Services and Property Damage: Who Pays?
In addition to liability concerns, many hosts are wondering what happens if a third-party provider causes damage during a guest’s stay. These service providers are not hired or vetted by the host, yet they’re now operating inside the property. If something gets damaged during the course of their service, the question becomes: who’s responsible for the cost of repairs? The answer isn’t always clear—the guest, the service provider, Airbnb, the host, your insurance provider?
Consider this scenario: Your Airbnb listing includes a clean, well-lit garage—primarily intended for guest parking. But today, it becomes the site of a high-intensity workout led by a strength trainer booked through Airbnb Services. He brings a barbell and weighted plates for a personalized session. Midway through, a guest overestimates their strength and slams the loaded bar onto the garage floor. The impact chips the concrete, cracks the surface coating, and leaves you with an unexpected repair bill to deal with—just one day before your next guests arrive.
AirCover is Airbnb’s go-to solution for hosts when it comes to both liability and property damage. However, AirCover offers weak-at-best protection for short-term rental operators. Simply, it’s not a comprehensive policy—and Airbnb has not provided clear guidance around how damage caused by service providers will be handled.
AirCover Has Never Been Enough on Its Own—and Airbnb Services Further Proves It
AirCover was designed to give hosts peace of mind when using Airbnb’s booking platform. The concept is simple – a built-in protection program that makes hosting easier and reduces friction for both guests and property owners. In theory, it sounds great. In practice, AirCover has always been limited in scope.
Critical Limitations of AirCover Every Host Should Know
For starters, AirCover is not an actual insurance policy for hosts. It’s a platform protection tool meant to provide hosts with hope for some financial reprieve in specific situations during a guest’s booking period, at the complete digression of Airbnb. It also lacks the depth and reliability of a true short-term rental insurance policy.
Some of the biggest limitations of AirCover include:
- You’re not a named policyholder. AirCover is provided by Airbnb for its own protection—you aren’t listed on the policy and therefore don’t have direct rights.
- There’s a class action waiver. If Airbnb fails to uphold their coverage, hosts can’t take legal action through a class suit.
- AirCover’s exclusions and limitations are extensive and vaguely defined. Serious risks like assault, battery, and invasion of privacy are explicitly excluded. It’s also confided only to the booking period and must be reported within 14 days of the responsible guest’s checkout.
- Airbnb steps back when you scale up. As of March 2025, for hosts and co-hosts managing six or more listings, Airbnb states that their Host Liability Insurance coverage will now take a secondary role—putting the burden on your insurance to respond first.
Excerpt taken from Airbnb, May 2025
How Airbnb Services Expose the Gaps of AirCover Even More
For typical guest stays, these gaps have always left hosts vulnerable. But with the launch of Airbnb Services, those vulnerabilities are now front and center. Here’s why:
- Airbnb is introducing third-party service providers—chefs, personal trainers, massage therapists—directly into guest stays at your property.
- If an incident occurs—whether it’s an injury, misconduct, or property damage—AirCover’s existing exclusions still apply, and you as the host can easily be summoned into the lawsuit.
- These Service providers aren’t your employees, yet their actions take place under your roof.
Responsibility Hot Potato: Airbnb Tosses It Between Providers and Hosts
Airbnb’s own terms reflect this approach. In their recently updated Experiences and Services Liability Insurance Program, Airbnb states:
“Airbnb requires that all Experience and Service Hosts maintain primary liability insurance appropriate for your business. Based on the type of Experience or Service you want to host, you may be required to provide proof of licensure and/or insurance as part of the submission process.”
Excerpt taken from Airbnb, May 2025
The key word here is “may.” Airbnb is signaling that service providers should carry insurance—but stops short of making proof of a firm requirement across the board. The result? A vague system of checks and balances where enforcement is inconsistent, and hosts are left with only a wish and a prayer that the Service providers are adequately covered by their own business insurance.
In fact, Airbnb’s Experiences & Services Liability will only even consider responding if the provider maintains active business insurance of their own. No insurance? No coverage from Airbnb.
It’s a bold move that makes clear that Airbnb doesn’t want to shoulder the liability burden for these new offerings—another signal that hosts and property owners are being left to manage the risk.
Even if Airbnb collects proof of insurance from a provider once—there’s no guarantee it will remain active. A massage therapist could show proof when signing up, then let their policy lapse 30 days later. If something happens, and Airbnb’s insurance doesn’t respond, guess who’s left exposed? Again, it’s you, the host, that’s being sued.
Meanwhile, no additional protections are being extended to property owners. The risk of an incident happening at your property remains as high as ever before, with little clarity in terms of third-party service providers on who is actually footing the bill when something goes wrong.
To complicate matters further, Airbnb is automatically opting hosts into allowing Services. While you can opt out, many hosts worry this could hurt their search ranking and visibility, forcing them to accept added risk just to stay competitive.
Proper Insurance Was Built for Airbnb Risks – Including Third-Party Services
The introduction of Airbnb Services may feel like uncharted territory for hosts, but for Proper Insurance, it’s not unfamiliar ground. Our policy has long been designed to account for the real-world risks that come with opening your property to guests—and the people they invite in.
Key Protections Included in the Proper Policy
Proper Insurance does not exclude coverage for incidents involving third-party service providers. That means if a guest books a massage, a private chef, or a personal trainer through Airbnb Services and something goes wrong—you can be confident that your coverage is still intact. The Proper Insurance policy includes:
- No exclusion for third-party services. Coverage remains in place for liability involving third-party service providers like chefs, massage therapists, or trainers.
- Coverage for serious risks that AirCover excludes. Assault, battery, and invasion of privacy are all major exposures in these situations—and they’re not excluded from Proper’s policy.
- Protection for property, contents and lost revenue. If property damage from a third-party service or guest leads to canceled bookings and repair downtime, Proper uniquely has no sublimit on guest-caused damage and provides you with revenue protection up to your chosen limit.
It’s important to note that Proper’s coverage applies when the host is not the Service provider themselves. If you’re running a separate business—like catering or massage therapy—you’ll need to carry your own commercial liability coverage for that specific business’s activity. When a Service provider is booked independently by a guest and operates on your property you can be confident in your protection from the Proper policy.
Insurance That’s Ready to Respond to the Added Risk of Airbnb Services
With automatic opt-ins, vague enforcement standards, and critical exclusions in AirCover, the risk of being caught off guard by a high-stake claim or extensive property damage is higher than ever. Hosts aren’t just sharing their homes anymore—they’re sharing them with third-party providers they didn’t hire, don’t manage, and can ultimately be held responsible for.
The Proper policy is built specifically for the business of short-term renting, with protections that account for today’s hosting reality.
If you’re unsure what your current insurance does—or doesn’t—cover, now’s the time to find out. Because offering more to your guests should never mean risking everything you’ve built.
What Hosts Are Asking: Airbnb Services and Risk
Does Airbnb’s Services increase my liability risk as a host?
Yes. By allowing third-party providers like chefs or massage therapists into your short-term rental, you’re opening the door to additional liability exposures—especially since these individuals are not employed or vetted directly by you. If something goes wrong, the risk could fall back on you as the Airbnb host and owner of the property and ultimately drag you into a lawsuit.
If I allow Airbnb Services at my property, what risks am I taking on as a host?
You’re taking on liability for the behavior and safety of third-party service providers operating at your property. If a provider causes harm or behaves inappropriately, the guest could pursue legal action against the service provider—and you—simply because it happened at your property.
You’re also assuming risk for potential property damage caused by those providers. For example, a nail technician brought in through Airbnb Services might rinse leftover harsh chemicals down your bathroom drain. Over time, this can corrode plumbing or lead to costly repairs—well after the guest’s stay has ended. And because the damage wasn’t immediate or obvious, it puts you in an especially gray area when it comes to determining what happened, when, and who’s responsible.
And with AirCover excluding major liabilities like assault and invasion of privacy—and offering little clarity around property damage caused by third-party providers—you could find yourself unprotected in both legal and financial situations. That might mean paying out of pocket for repairs, or facing court costs and attorney fees if you’re pulled into a lawsuit—even if you aren’t found negligent.
Can I be sued for something an Airbnb service provider does during a guest’s stay?
Yes. If a guest has a negative experience—like inappropriate behavior or injury—from a service provider booked through Airbnb, they may file a lawsuit that includes Airbnb, the provider, and you as the host. Even though you didn’t hire or oversee the provider, the incident took place at your property, which can make you part of the legal exposure. If your insurance policy doesn’t include Commercial General Liability coverage for these situations, you could be left personally responsible for legal fees, court costs, or any resulting settlement.
Will my Homeowners or Landlord policy protect me from issues involving Airbnb Services?
Most likely not. Standard Homeowners and Landlord policies typically exclude or severely limit business activity (like operating an active income generating short-term rental), guest-related liabilities and property damage by guests you allowed into your home. With Airbnb Services introducing third-party providers into your property, those coverage gaps become even more pronounced. These policies were never intended to cover incidents involving chefs, massage therapists, or other service providers interacting with paying guests at your residential property. To protect against these evolving risks, you’ll want a specialized short-term rental policy—like the one offered by Proper Insurance—which includes commercial-grade liability protection and robust property & contents coverage that was designed for hosting.
Does AirCover protect hosts against incidents involving Airbnb Services?
AirCover is a free platform protection provided by Airbnb—not a substitute for comprehensive short-term rental insurance. It comes with a long list of exclusions, including assault, battery, invasion of privacy, and other liabilities that can easily arise when third-party service providers are involved. While AirCover may offer some support in limited cases, it should never be relied on as your primary protection. Airbnb has full discretion over whether to accept a claim, how much to cover, and how the process unfolds. As a host, you are not named on the policy and have no direct rights or guarantees.
How can I protect myself if Airbnb is promoting and providing third-party service providers to my short-term rental property?
The best protection is a comprehensive short-term rental insurance policy that includes Commercial General Liability coverage— specifically for incidents involving third-party providers and your Airbnb guests. Proper Insurance was built with these evolving risks in mind and does not exclude claims involving third-party service providers like chefs, massage therapists, or trainers invited through Airbnb. Not sure if your current policy would respond in these situations? Our team can help. Request a coverage comparison and find out where gaps may exist in your policy—before an incident puts your business at risk. Call 888-631-6680 to speak with a specialist today.
Does Proper Insurance provide compatible coverage for Airbnb Services?
Yes. Proper Insurance does not exclude incidents involving third-party service providers so you can be confident that your coverage remains intact if something goes wrong. The Proper policy offers the most robust coverage on the market for Airbnb hosts and short-term rental owners including the superior strength of Commercial General Liability coverage, unique property and contents protection, and industry-leading coverage for lost revenue during a repair/rebuild period.
Still Have Questions?
Give us a call. Proper’s Super Agents are the nation’s leading short-term rental insurance experts. Since 2014, protecting Airbnb hosts and short-term rental owners with the most comprehensive coverage on the market has been our sole focus. Whether you’re navigating Airbnb’s newest offerings or just want to double-check your current policy for gaps, we’re here to help.
Call 888-631-6680 to be connected with a short-term rental insurance expert in your area or get a quote today to get started.
