We’re addressing some common questions about insurance when it comes to starting a peer-to-peer marketplace with our CTO and Co-founder Adam Broadway.

Do I need to buy a special type of insurance for my marketplace?

Often, a clear set of “Terms of Use” stating the need for the buyer/seller, lessor/lessee, sharer/giver to have their own insurance in place helps your marketplace be the “match-maker” between two people who’ve agreed to the terms of the transaction. Depending on the type of service and where you’re providing it, insurance may be a wise choice. Some marketplace owners choose to ‘self insure’, meaning they will provide a level of compensation if a transaction doesn’t work out too well.

Also, think about legislation requirements within your jurisdiction/geographic location. Does your service adhere to these? Are there any specific laws that you need to make your marketplace participants aware of? Laws and insurance companies are running to catch up to the new way that individuals share and rent things.

How does Near Me help me solve the problem of insurance?

Whole communities are now accessing common goods and services that would previously have been bought, owned and insured by a single individual or family. We’re talking to a number of global insurance underwriters who realize that prorating insurance premiums on shared items is the future: insuring community ‘inventory’ that is accessible by all and insured for all trusted parties.

We’re also learning about ways that existing insurance policies already cover shared use. As we power different types of marketplace all over the world, insurers are seeing value in providing a competitive option via Near-Me.com. (Watch our blog for updates on our progress to get a better deal for you)

What type of things am I responsible for?

Trust underpins any successful marketplace and providing excellence in customer support and service is the foundation to trust. Providing a mediation for dispute and allowing legitimate ratings and comments on all transactions between both sides of the marketplace goes a long way in mitigating many insurance related problems due to fraud.

You want to remove any marketplace user who can’t be trusted. In general, less than 2% of transactions will have a dispute or problem inside your marketplace. Dealing with these with good customer service will lead to great user experience and further recommendations that your marketplace is legit.

What is the user/guest/renter responsible for?

When a transaction takes place, all parties are agreeing to the terms set in your marketplace “terms of use” along with any notes described by the supplier of the goods/service. Knowing that their trust profile will be directly affected by a bad experience, the user/guest/renter is usually careful to maintain a positive reputation.

Do you have any questions about peer-to-peer marketplace insurance you’d like to ask Adam?