Major Japanese non-life insurers have launched insurance products targeting operators of minpaku private lodging businesses.
As a Japanese law regulating the minpaku business took effect in June, the insurers anticipate growing demand for insurance products that cover related risks, reports Jiji Press.
Aioi Nissay Dowa Insurance has released an insurance product for minpaku operators which covers personal injury and property damage but also losses inflicted as a result of defeat in damages suits filed by guests over acts of discrimination or defamation.
Mitsui Sumitomo Insurance has a minpaku insurance product launched in April that compensates for injuries to guests suffered at policyholders’ lodging facilities.
The insurer will also engage in settlement negotiations and lawsuit procedures on behalf of minpaku operators, for cases in which compensation claims are made over broken equipment, for example.
The product gives minpaku operators freedom to set the range of insurance coverage based on the number of operating days of their facilities.
Sompo Japan Nipponkoa Insurance plans to release an insurance product for those who rent rooms through majo home-sharing website operator Airbnb, an alliance partner. The insurer will pay up to JPY100m ($891,000) in compensation for problems caused by guests in rooms offered via Airbnb, which will pay the insurance premiums.