Indiegogo is testing insurance for backers of failed campaigns

Crowdfunding is a risky business, and unlike going down to the high street to buy something you have almost no protection against con artists and receiving a product that ended up being completely different to what was originally promised. Indiegogo is starting to do something about that.

The crowdfunding site is now testing insurance for backers, and it requires them to a bit extra when they make a pledge. If the promised product doesn’t appear within three months of when its supposed to then they’ll get a full refund.

Currently Olive Labs’ Stress Band is the only project on the site that has insurance available, and up to 25 people can pay $15 (£9.50) to protect their investment. The 25 person limit is a bit irritating, but this is only a trial and we can’t exactly expect Indiegogo to make it universally available right away.

It’s not clear whether or not this feature will roll out to more campaigns, and I suppose it depends on how this does in the initial stages. It might not be total backer protection just yet, but it certainly is a start.