Bolt Cover offers protection on point-of-sale for retailers, extending the life of products and giving consumers peace of mind

According to Boston Consulting Group, products are often built to break in the modern world. If it is difficult to fix something, it is more likely that consumers will simply replace the item, generating more profit for manufacturers [1]. Offering embedded insurance solutions can revolutionise a retailer’s approach to customer care and generate additional revenue. 

Bolt Cover aims to offer product protection through efficient, effective integrations wherever products are sold. It is on a mission to provide comprehensive, customer-friendly cover at the point of sale, and one that is at minimal disruption to consumers when something goes wrong. Bolt Cover also aims to empower retailers of any size to offer product protection and extend the useful life of products. 

Industry overview and challenges 

Annually, £93bn of repairable goods are sold in the UK, which equates to one quarter of all retail sales. However, 75% of all repairable products are uninsured, ending up in landfills rather than being repaired or resold [2]. Point-of-sale protection is currently only being offered by large retailers. In the UK, approximately 13,500 SME retailers are unable to offer product protection to consumers without losing money [3]. This is especially true in online retail in the UK, which is underserved despite being the largest European online market [4]. 

Many of today’s primary consumers, which are from the Millennial and Gen Z generations, are digital natives. Older generations are also becoming active digital customers [5]. Increasingly, the relationship between brands and consumers is shifting to become more personal and experience oriented. In 2023, the Society of Actuaries Research Institute conducted a study on younger generations’ perception of insurance. It showed that 61% of younger consumers intend to purchase one or more types of insurance within the next year, and that roughly half of these people would prefer to buy it online — regardless of the type of insurance [6].  

 Similarly, the UK Retail Protection Report shows that 71% of consumers want to purchase product protection directly from retailers, manufacturers and payment apps during or after checkout. Additionally, of those surveyed, 54% of customers preferred the convenience of adding protection either at checkout or post-purchase [7].  

It is also reported that the embedded insurance market is showing a CAGR of 25% between 2024 and 2030 [8]. For retailers, this can represent a potential jump in revenue, with research showing that offering embedded insurance can increase website conversions by 11% [9]. 

 Bolt Cover believes that it is the only tech-driven solution targeting both in-store and e-commerce channels across multiple categories that can rapidly scale across the SME market. The company aims to revolutionise product protection by helping retailers and manufacturers to embed insurance at the point of sale. It enables consumers to add insurance to their online or in-store purchases easily and conveniently. 

Introducing Bolt Cover

Bolt Cover unlocks opportunities for any business to capitalise on the growing product protection market. It has created a series of apps and APIs which allows it to connect with any online or in–store retail system, allowing retailers and manufacturers to effectively distribute insurance. It is initially focusing on the UK but aims to offer product protection wherever repairable products are sold. 

The company is partnered with three leading insurers, which collectively write over $10bn of global business annually. It will offer cover for various items, such as furniture, bikes, eyewear, electronics, home appliances, jewellery and watches, fine art and collectibles. Within these categories, the company estimates an insurance value worth $990m.  

How does Bolt Cover work? 

For each insurance policy distributed through Bolt Cover, the company receives a commission, which it states is typically 20% of the insurance premium paid. The rest of the premium will go to a distribution partner, for providing the introduction to the customer, and the insurer who underwrites the risk for between 50% and 55% of the revenue. 

 The products are distributed to consumers on a non-advised basis as a complementary purchase to their repairable product item via connected retailer or manufacturer distribution partners. These businesses are generally not regulated by the FCA and partner with Bolt Cover under a ToBA that, according to the company, allows them to either distribute insurance products under the ‘Connected Contracts’ exemption [10] or introduce the insurance under the ‘incidental to business’ exclusion [11]. 

 As stated by the company, the proprietary Bolt Cover System can be quickly set up for online and in-store purchases of physical products. Each route is fast to integrate and offers full free technical support. For online stores, the company has developed a suite of e-commerce plugins that are intended for retailers to integrate the offering for insurable items. The secure software is designed to auto-generate insurance premium pricing for consumers when adding product protection to their purchase at point of sale. For physical retail outlets, the Bolt Cover System is described as free, simple and secure to access. The company also provides training videos and helpful guides regarding the conduct requirements when distributing a regulated product. 

 Additionally, Bolt Cover works with manufacturers to distribute insurance. This is done via co-branded marketing materials included in the packaging of insurable products shipped to the UK. Once consumers have unwrapped their items at home, they can scan a QR code to access the Bolt Cover System and purchase product protection. Following purchase, the policyholder receives their policy documents electronically via email. Easy access is also available via the Bolt Cover System Portal, which the company describes as a fully operational policy administration system. 

 For claims handling, Bolt Cover targets the best-rated claims administrators in each product category to give the policyholder the best experience possible.  

 Retailers and manufacturers can offer product protection to their customers, allowing them to open a new revenue stream by adding recurring income through commissions. The company claims that it can help retailers increase their revenue by up to 5%. Additionally, the solution can also help them boost customer satisfaction and loyalty and reduce returns, repairs and customer service costs. For manufacturers, Bolt Cover reports it offers customer insights to help them better understand the purchasing behaviour of their clients, improve their product and service, as well as enhance their marketing efforts. 

What’s next for Bolt Cover? 

The company has chosen to use Floww’s innovative infrastructure to facilitate its funding efforts as it achieves its future goals. Bolt Cover is looking to raise funding to unlock its go-to-market plan.  

The company was launched in March 2024. As of May 2024, Bolt Cover reported it had 76 retailers and 14 manufacturers committed to its platform. Its insurance partners are Acasta Europe, Collinson Group and the Great American Insurance Group. According to the company, it has written over 950 policies and established twelve online integrations. 

As of mid-2024, the company has launched insurance solutions for two categories, bikes and furniture. Additionally, the company reports It has a further six categories in its 2024 pipeline. Bolt Cover also has an agreement with SharkNinja to integrate with their D2C online platforms by the end of July 2024. 

In 2025, the company plans to launch its mobile app to consumers for insurance upsell and claims handling. It also aims to expand internationally to the EU with its partners. 

*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098.

The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by Bolt Warranty Limited in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.