Council…insurance what should I be doing
What? Please frame a more coherent question. We are not mind readers here.
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Lol…sorry …do I need to inform the council ?
Give more backstory than this! ??
What you do need to do is investigate the regulations in your area for sure, get permission from the owner if you aren’t the owner. Don’t just open up shop without research or you may find yourself with a big fine on day one.
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…dont know where to start…
If you can’t even do the basics, I’m not sure if you are ready for prime time here.
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This is an international forum, we know nothing about your jurisdiction.
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Especially sine the OP doesn’t tell us where he is. Another brand new poster, not surprised at the lack of understanding of how the forum works. Big sigh
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Begin at the beginning 
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tell you what, delete this thread, and google ‘convert my house into flat’ and have a good old read.
Do it quick before the grumpy members come along and shred you!
Sounds like you should be on a property forum.
Any Airbnb questions after that, come on back, tell us what country and other details that might help.
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I shall just go…
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If you are talking about the UK, you need to apply for planning permission.
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Thanks Helsi 
And of course make sure it meets building regs.
Helsi is very kind. But wait until she gets tough!
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If you’ve identified a builder/architect to do the work, they should be able to direct you to your local Planning Officer.
Please tell me you are going to use an architect/builder?!