Insurance – a prime necessity for any business!
Every business goes through ups and downs. Likewise, a peer to peer marketplace would hit a few bumps. Keeping insured would eliminate obstacles resulting in smooth functioning and keeps the owners and customers secure and protected.
So, let’s recognise the reasons why insurance is important in a peer to peer marketplace.
Building a Trust
Insurance secures tangible property like Home, cars, bikes, or any asset. By securing the property advertised on the marketplace website, builds trust among Providers/Host.
As insurance would help in refurbishing the property if it got damaged or vandalised, the Provider/Host feels secure and safe to rent their property on their marketplace website. In turn, earns trust among Providers.
Furthermore, Providers/Host like to advertise their property on a marketplace website where safety and security considered as a priority. They take the possible risk from their side to promote on your marketplace website.
Protect owners from losses
Mishaps are bound to happen. To repair the damage done, insurance helps in providing coverage for the assets. This makes the peer-to-peer marketplace function smoothly without losing a Provider and balancing the supply and demand.
Car and bike rental companies see physical losses like the collision of the vehicle or bike, theft, vandalism, fire. Home rental companies encounter losses such as damage to the door, window, floor, wall, and items kept inside the house like mirrors, glasses, flower vase or any electronic equipment.
Protect from legal actions against Owners/Providers
When a third party claim Owners/Provider regarding any injury occurred during the renting period by the Guest/customer, insurance can help the owners to solve the issue and protect from legal cases.
For instance, Airbnb provides insurance of $1,000,000 if any bodily injury or property damage happens. But the Providers/Host comply with certain conditions and have to meet.
Turo a peer to peer car sharing company provides up to $1,000,000 for bodily injury and property damage to third parties.
Make your marketplace ‘Secure and Protected’
Providing insurance makes your marketplace secure and protected to rent people’s private property.
People usually invest in something which is safe and highly profitable. As Sharing economy is booming quickly, very few insurance companies have started providing insurance coverage for any property listed in a peer-to-peer marketplace. But still, it might take years to modify traditional insurance policies.
Marketplace owners have great benefit in providing insurance to the Providers and customers. It builds trust among, protects Providers/Host from losses and legal actions and builds the marketplace safe and protected.