My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.


Indiegogo Tests Offering Optional Insurance to Protect Against Dubious Campaigns

Guest Writer
2 min read
Opinions expressed by Entrepreneur contributors are their own.

Indiegogo is testing a feature that would allow product backers to purchase optional insurance directly from the crowdfunding platform. In exchange for a small fee, backers are guaranteed a full refund if the product fails to arrive within three months of the estimated delivery date, TechCrunch reports.

At this point, the insurance is only being offered on one test product. For $15 backers of Olive, a stress-management wearable, will be refunded  if they don't receive their Olive within that three-month window.  No word yet on whether the crowdfunding site will extend the option to other campaigns on its platform.

It's certainly an interesting move. Crowdfunding sites have long been plagued by instances of designers and entrepreneurs collecting money from backers and then failing to deliver their product; more ominously, Indiegogo has hosted a series of campaigns that some believed were outright scams.

Related: Baggage Blues No More: A Smart Suitcase Raises $1 Million on Indiegogo

Compared with the better-known Kickstarter, which does not offer optional insurance for backers, Indiegogo's standards and screening process for campaigns tends to be looser. Unlike Kickstarter, Indiegogo allows individuals to select a 'flexible funding' option for their campaign, so even if a project doesn't meet its goal, the creators can collect the raised funds anyway. The San Francisco-based company also recently rolled out a new option that allows campaigns to remain open indefinitely without a set deadline. Both features are great in that they provide aspiring designers and entrepreneurs with additional resources to get their projects off the ground, but they also detract from the structure and accountability that makes Kickstarter a relatively well-respected crowdfunding platform.

As a result, for better or for worse, Indiegogo often attracts wackier, more over-the-top campaigns than Kickstarter. An insurance program could make sense for the platform, helping to alleviate backers' hesitancy to throw down money on a cool project that may or may not come to fruition.

Related: Indiegogo Pilots New Program Allowing Crowdfunding Campaigns to Stay Open Indefinitely

More from Entrepreneur

Kim's expertise can help you become a strong leader, pitch VCs for capital, and develop a growth strategy.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur