Sounds to me like Paul Graham has made a fairly fundamental and common mistake, which is to say believing the AirBnb people when they reassure him that everything is under control and there's no fire here. Paul, if you actually read the statements made by the CEO on news.ycombinator.com, it's very clear that AirBnb are the primary, if not only, ones at fault here. I don't want to call Paul a liar, since it seems like…
Air BNB is specifically not an insurrance company. They technically have no obligation to pay in the case of any damage. For them, the best possible course of action was to bury this case. However, now that it's come into the public light they're torn between (a) trying to re-iterate to everyone that they do not have liability and (b) trying to look good by doing the "Right Thing". As a business owner, I feel for the…
Separating the two is what causes situations like this.