A guest found a motion detector in the hallway, panicked, and called the police claiming I had “hidden cameras” watching them undress. It wasn’t a camera, but now I’m facing a lawsuit for “Invasion of Privacy” and “Infliction of Emotional Distress,” and Airbnb has suspended my account indefinitely.
Key Takeaways
- “Personal Injury” Coverage: In insurance, “Personal Injury” doesn’t mean broken bones; it means defamation, libel, slander, and invasion of privacy. You need this specific coverage.
- The Intentional Act Exclusion: If a guest claims you intentionally spied on them, insurance might deny defense because “intentional acts” are never covered.
- Defense Costs: The legal fees to prove the device wasn’t a camera are expensive. You need a policy with a “Duty to Defend.”
- Airbnb’s Zero Tolerance: Airbnb will ban you first and ask questions later.
The “Why” (The Trap)
The trap is the definition of “Bodily Injury” vs. “Personal Injury.”
A standard liability policy covers “Bodily Injury” (slips/falls). It often excludes “Personal Injury” (privacy/slander) unless endorsed. Even if you have it, many carriers interpret privacy claims as “intentional,” allowing them to walk away. You need a policy that defends you against allegations of privacy invasion until proven guilty.
The Investigation: I Called Them
- Proper Insurance: I asked specifically about “Invasion of Privacy” claims. They cover it under their Commercial General Liability (CGL). They confirmed they would pay for the defense lawyer to prove the device was just a motion sensor.
- USLI (Commercial): Another strong commercial option. They include “Personal and Advertising Injury” which covers privacy suits.
- State Farm (Homeowner): The agent said “Personal Injury” is an add-on. Even with it, they said an investigation would be opened to see if I intended to record. If there’s any ambiguity, they might reserve rights.
Comparison Table: Privacy Lawsuit Defense
| Feature | Commercial CGL (Proper/USLI) | Standard Home + Personal Injury | Airbnb AirCover |
| Invasion of Privacy Coverage | YES (Personal & Adv. Injury) | YES (If endorsed) | Unclear/Weak |
| Duty to Defend | YES | YES | Varies |
| Intentional Act Defense | Will defend until proven intentional | often excludes immediately | N/A |
[IMAGE: Photo of a benign motion sensor next to a Wi-Fi router, labeled ‘Not a Camera’]
Step-by-Step Action Plan
- Label Your Tech: Put a sticker on your motion detectors and routers: “Motion Sensor – NO CAMERA.” It sounds silly, but it prevents panic.
- Disclosure: Disclose every device in your listing description. “Exterior cameras on porch; NoiseAware in living room (does not record audio).”
- Buy “Personal Injury” Coverage: Check your policy. If it only says “Bodily Injury,” you are exposed to privacy lawsuits. Add “Personal Injury.”
- Don’t Use “Nanny Cams”: Even if disclosed, indoor cameras are banned by Airbnb as of 2024/2025. Remove them all.
FAQ
Will AirCover provide a lawyer for this?
AirCover’s liability insurance does mention “invasion of privacy,” but they are very quick to distance themselves if the guest makes a credible allegation of spying.
What if it really was a camera?
If you actually put a hidden camera in a bathroom, no insurance on earth will cover you. You are going to jail and you will be sued personally.
Does a NoiseAware device count as a camera?
No, but guests confuse them. Disclose it explicitly to avoid the panic call.