Washington insurance commissioner Mike Kreidler has fined vacation rental company AIrbnb $20,000 for acting as an unauthorized insurer in Washington state.

Kreidler's office opened an investigation based on Airbnb's Host Damage Protection (HDP) program in Washington, which advertised $1 million of coverage for damage caused by an Airbnb guest. The insurance feature was included with each booking as a part of Airbnb's AirCover program, provided under a general liability policy with the hosts covered as insureds.

As part of the consent order, Airbnb must review all previously denied HDP claims filed by hosts with properties in Washington since January 1, 2021, and pay out any costs that should have been covered but were improperly denied. Kreidler has also ordered the company to obtain a surplus lines insurance policy if it wishes to continue to offer the HDP program in Washington.