A journalist checks out the fundraising website indiegogo.com / Getty Images

Firm is trialling $15 insurance that will refund backers of failed projects

Crowdfunding site Indiegogo is testing out insurance for backers of products on its platforms — hoping to stave off concerns about risky or problem products by refunding users if their projects fail.

The insurance is being tested on Olive, a stress management wristband that has so far raised $176,000 from a $100,000 target. Users pay $15 for the insurance, which is provided by Indiegogo.

That gives backers all of their money back if they don’t receive the product within three months of the delivery date. Two people have paid for the product so far, out of a possible 25 — though the Olive product itself is not limited, the insurance is.

“Indiegogo regularly develops and tests new features to meet the needs of both funders and campaign owners. This pilot test is currently limited to this individual campaign,” a spokesperson told Techcrunch.

Indiegogo is less high-profile than its main rival, Kickstarter. It has sometimes said to be more relaxed about the projects that it allows on its platforms — which have led to it hosting more controversial and potentially problem products — and the insurance could help it protect customrs from such products as well as differentiating itself from its rival, Techcrunch reported.