Safer shopping

A new service helps wary online buyers protect themselves against fraud, loss, and damage.

By -- Modern Materials Handling, 8/1/2000

If you're curious about online business-to-business auctions but are reluctant to take the plunge, a unique service from a company called WebTradeInsure (www.webtradeinsure.com) might provide just the reassurance you've been looking for. This company, which debuted July 11, offers insurance for online buyers and sellers.

In a typical sales transaction, the buyer's control of insurance benefits is limited. The seller buys freight insurance. If goods are lost or damaged, it's up to the seller to file a claim. The only option to protect against fraud is an escrow service, in which a third party holds funds and releases them to the buyer in the event of an unsatisfactory shipment. But that process can be slow.

WebTradeInsure aims to change that with its services:

• Transit Insurance, provided through New York Marine & General Insurance Co., insures items valued up to $250,000 from physical loss or damage during shipment-door to door, including local delivery.

• Credibility Insurance, provided by Lloyds of London, protects the buyer against fraud and misrepresentation (up to $10,000).

In both cases, the buyer of the goods can purchase the insurance and submit and collect on claims. But sellers may buy insurance as well. For example, a seller who isn't getting bids on an item could provide insurance to add value and make its product more attractive to buyers, says company president Winnie Briney.

The buyer or seller can purchase one or both types of insurance by filling out an online application. Coverage is available as soon as the application is submitted, according to Briney. The cost for insuring general freight is 55 cents per $100 of value. WebTradeInsure says its claims process can be completed online in a matter of minutes.