Tags: insurtech

Here’s a secret about traditional insurance policies: coverage forms are written for the benefit of the insurance company, not the policyholder! Unfortunately, this lack of customer care is even more evident in the on-demand economy. Insurance companies, even those claiming to be innovative, are actually offering LESS coverage - oftentimes none at all - despite on-demand workers’ need for MORE coverage.

If that sounds unfair, it is! On-demand workers take on an enormous amount of risk - greatly disproportionate to the amount of income earned. For example, the average Airbnb Host in California earns about $5,000 / year through the platform. However, an accident at their home that causes injury to a Guest could cost hundreds of thousands of dollars. A fire could wipe out all of their physical assets. On-demand workers need proper protection.

The problem is traditional insurance policies are not responsive due to their restrictions and exclusions about occupancy and business operations. Enter Slice. We’ve designed custom insurance policies specifically for the on-demand economy. We are an InsurTech organization re-imagining every step of the insurance experience. We rely on a lot of fancy technology and cutting-edge creativity, but perhaps our most innovative action is thinking like a customer.

But we didn’t stop at just creating an awesome policy - that was actually pretty easy. We invested heavily in research, actuarial analysis and risk management techniques to come up with pricing that is affordable at just dollars a day. That was hard! But we did it.

We also decided to be primary insurance - meaning we will pay claims from “dollar-one”, no requirement to first report losses to another insurer. This makes the claims process for on-demand workers direct, clear and within their control.

So, what specifically do you get from a Slice policy? Our first policy is for Homeshare Hosts - those who rent their houses, condos, apartments or other interesting properties on platforms such as Airbnb, Homeaway and OneFineStay:

Primary Insurance

Almost every insurance policy has a clause named “Other Insurance”. That clause explains to the Insured that coverage only applies in excess of any other valid and collectible insurance. We believe that once a policyholder pays the premium, they are entitled to make claims. The Other Insurance clause is a means for insurers to refuse or delay those claims, and we think that’s unfair.

We therefore clearly and specifically created a policy that is “primary and noncontributory”. We will pay claims without ever requiring our Insureds to first claim from other insurers, or without ever first trying to share payment with another insurer.

Commercial Liability Limit of $2,000,000

The on-demand economy is an unknown. Insurers don't like the unknown and respond by making policyholders take on more risk. The result is protection options for on-demand workers at very low limits. The most we’ve witnessed is only $1,000,000. More troubling is that the on-demand worker is not the Named Insured on that policy, meaning they have no policy rights: no right to file a claim with the insurer, no right to make coverage changes and no right to be defended against allegations and lawsuits. Only the platform decides which claims will or will not be submitted to the insurer.

We offer a $2,000,000 limit of commercial liability and we’ll pick-up all the defense costs in addition to that limit. Plus, our policies are issued specifically to the Host, who is the Named Insured.

Homeshare Specialty Coverages

Renting your home on platforms such as Airbnb offers an amazing means to earn revenue from your assets. However, it comes with risk. Our job at Slice is to transfer that risk to us. One of the ways we do that is by including a number of Homeshare-specific insurance coverages designed to address your key exposures. We offer 18 such coverages! Here are some highlights:

Vandalism and Malicious Damage - Insurance policies traditionally exclude vandalism and malicious damage caused by renters. We’re not traditional at Slice, and exposure to vandalism and malicious damage is a huge risk for Homeshare Hosts. We therefore cover vandalism and malicious damage to the full limits of the policy and for replacement cost.

Host Liquor Liability - We will cover you when you are held liable for damages arising from the service of alcohol by your renters - even if the renter violated liquor laws or served alcohol to minors. We offer this coverage to a limit of $500,000 each claim, and $500,000 in total for each year.

Excessive Use of Utilities - What if a renter decides to download terabytes of data from the web, using your wifi account during his stay at your house? Most data plans have maximum GB that can be downloaded each month. Exceeding those limits can cost you dearly. We will pay for the excessive use of any utility (internet, gas, electricity, water etc…) that occurs while your home is rented via an on-demand rental platform. We don’t apply a deductible to this coverage.

Valuable Articles and Electronics - When a Guest causes damages to valuable articles, electronic components or household appliances, we will cover the cost of that damage, with no applicable deductible! Accidents will happen. And while some traditional insurance policies will cover this damage, the deductible is usually set high enough to make your claim pointless. With Slice, you’re protected - with no additional cost to you!

Infestation - As more and more people travel, the spread of pests becomes more prevalent. Slice recognizes this exposure and will protect you from the infestation of bed bugs and other unwanted pests. We provide $5,000 to cover the cost of fumigation, professional cleaning and any damage to property caused by the introduction of such pests into your home by a Homeshare Guest. Plus, there is no deductible!

Municipal Fines, Citations and Penalties - There's been a lot of media attention about Homeshare guests who throw wild parties during their rentals, causing extensive damage to the house. We've already described how well we cover that kind of physical damage. But what about the fines issued by the municipality to the homeowner for violating noise and occupancy ordinances? It can cost thousands of dollars. Fortunately, Slice thinks like a Homeshare Host! We cover the cost of municipal fines, citations and penalties caused by renters. We provide this benefit in addition to all other coverage, and there is no deductible to pay.

Among some of our other benefits, we include protection for Identity Fraud, Cyber Liability, Legal Expense, Loss of Rental Income, and at your option, we cover the property of your Guests.

When you rent your home on a homeshare platform, you are a business and therefore Slice provides business insurance coverage. Best of all, the coverage is “pay-per-use” - you only pay the premium when you need the coverage, in perfect sync to how you earn your revenue.

We think it's pretty obvious at this point that if you're a Homeshare Host, the only viable insurance protection for you is from Slice.  

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