Because insurance is a hassle? Who wants to go through the process of being righted after being wronged? Getting wronged to be reimbursed is not the business model most renters are seeking when they put up a property on AB&B.
Ok let's say you had a delivery business and have all the insurance necessary. You're saying you're equally likely to use a driver who has a history of careless driving as you would a driver who has a history of driving safely because you're covered by insurance.
I'm claiming people are seeking avoidance. People would rather have the deterrent effect, so that they might avoid the hassles of going through claims and then waiting for things to be righted.
But i was really referencing AirBnB insurance....