Insuring short-term rentals during COVID-19 While the pandemic has dealt a serious blow to the home-sharing market, insurance remains a necessity
we will be paying greater attention to hosting procedures and maintenance, including symptom screening, cleaning and sanitation between and during stays, guest admittance to the property, social distancing, etc.” Beyond its short-term rental product, Cambrian has had to adapt its business quickly in response to the pandemic. The MGA has introduced premium relief to insureds to account for their reduced oper-
“As underwriters, we will be paying greater attention to hosting procedures and maintenance”
The coronavirus has severely impacted the short-term rental market. Airbnb bookings in Europe sank sharply in March at the onset of the pandemic, according to AirDNA, and the home-sharing company’s revenue in North America is also continuing to decline. But despite the problems the pandemic has caused, insurance for short-term rentals continues to be an active space – possibly more so with a highly contagious virus on the loose. Canadian MGA Cambrian Special Risks recently partnered with Optimum Insurance to offer a specialized insurance solution for
short-term rental hosts in Ontario. When asked what risks short-term rental hosts should be aware of, Louise Blanchard, Cambrian’s managing director, warns that municipal authorities might still be restricting travel to their communities and that property owners need to abide by all local bylaws. She adds that home-sharing services such as Airbnb and HomeAway often also have their own guidelines and protocols for hosts. “It is our advice to property owners to thoroughly educate themselves prior to resuming their operations,” she says. “As underwriters,
CFC Underwriting unveils new M&A solution
CFC Underwriting has launched a new insurance product designed to help private equity firms speed up and simplify the process when pursuing a portfolio of add-on acquisitions. According to CFC, smaller transactions often go uninsured, but its new product can be structured to work with small addon acquisitions. It allows for an agreement over a master policy wording at the time of the primary platform acquisition, with an add-on endorsement when each subsequent acquisition completes.
ations, in addition to other flexible options like online payments. “COVID-19 brought on difficult times for all, as well as changes to the industry and to the way MGAs and insurance companies operate on a daily basis,” Blanchard says. “As restrictions were being imposed on our nation, we had to re-evaluate our product portfolio alongside our markets and decide which were wise to offer and which were no longer safe. We had to modify not only our underwriting guidelines, but also the way we evaluated risks as a whole, taking into account new government protocols, frequent and often drastic changes in operations, and complete halts in our insureds’ revenues, as well as alarming uncertainty regarding the future of their businesses.”
APRIL Canada introduces direct billing solution
APRIL Canada has launched a new direct billing solution that uses technology from SNAP Premium Finance to offer multiple payment solutions. Insureds can now pay for their premiums in either one full payment or monthly installments using a debit or credit card. The solution also reduces brokers’ obligation to collect premiums from clients, allowing them to focus on establishing relationships with insureds. The flexible payment solution also gives commercial clients greater control over their budgets.
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