Customers can now add insurance at checkout to cover any goods purchased online that get lost, damaged or stolen in transit up to the value of $5,000 per order thanks to new insurance product, Freighty.

The start-up was co-founded in 2018 by entrepreneurs, Jason Byrne and Alex Collins. Byrne is a former investment banker and start-up accelerator alumni and Collins is a full stack tech developer who previously made Australia’s first contribution to the international space station.

Freighty is the first automated claims management system in Australia with the capacity to handle high volume, low value claims at a mass scale. The business has partnered with world leading broker BMS and property and casualty insurance company, Chubb, after an initial capital raise of $500,000 from investors, Brisbane Based Fund Manager, Altor Alpha Fund, and Voyager Ventures, the VC arm of a Family Office.

Frieghty CEO and co-founder, Jason Byrne said the startup plans to target the entire Australian e-commerce market which is predicted to be worth $35.2 billion by 2021.

“Last year alone, Australia Post Group delivered more than 3.3 billion items to over 12 million addresses across the country. Many of these deliveries were travelling internationally or across states, making lost, damaged or stolen deliveries a very real concern for both retailers and consumers. Freighty helps provide protection as well as ensuring a hassle-free claims process,” Byrne said.

“Our business helps retailers reduce delivery issues and enhance their profits by taking over the responsibility for managing claims. For customers, it’s the simple click of a button to add the insurance to their cart at checkout for a tiny fraction of the transaction.

“As we lead into the holiday season, we expect to see more retailers join us as deliveries surge, and more customers demand to have this option at check-out,” he added.

Freighty’s claims process is underpinned by proprietary technology that processes, approves and pays claims within minutes with no paperwork or contact with retailers or insurers. It is

Freighty’s business model also offers retailers a commission on every policy sold, enhancing their profitability while simultaneously improving the customer experience, reducing delivery issues and cutting costs on staff needed to handle refunds, complaints and claims. Freighty is free for all retailers to install and integrates seamlessly into any website.

Following the launch in Australia, Freighty plans to expand internationally to the US and Europe within the coming months.