Online crowdfunding platform Indiegogo has started testing an optional insurance feature for failed campaigns, reports TechCrunch. This insurance feature will refund backers on the site in case the final product is not delivered within three months of the original delivery date.
This insurance feature is currently being tested on one campaign, a stress management wearable called Olive, which will close on December 6. Backers need to pay an additional $15 on top of investing $129 and so far two backers seem to have opted for this optional insurance.
This is a great move by Indiegogo, which provides companies with the Flexible Funding option allowing them to collect the funds raised minus a 9% fee for Indiegogo even if it doesn’t reach the initial funding target, because it would increase accountability.
This year a couple of campaigns on Indiegogo have come under the scanner for being unrealistically ambitious and possible fakes: the Heable GoBe, a wearable that claimed it can measure the user’s calorie intake & the Ritot projection watch, which claimed it would project the time and other notifications on the user’s hand. While ideally crowdfunding platforms like Indiegogo should vet campaigns more carefully before providing them access to the platform, this insurance facility does mitigate the backers’ risks to a certain extent. As of now, it’s not clear if Indiegogo will extend this feature to all campaigns on its platform or not.
Earlier this year, Indiegogo had introduced a Forever Funding option that allowed companies to continue receiving donations after the usual month-long funding window most crowdfunding platforms provide.