Accident Protection
Accident Protection plans offer coverage for physical damage caused by customer handling. Unlike extended warranties, which only cover manufacturer defects, Accident Protection covers the unexpected: drops, spills, breaks, and other mishaps that occur during regular use.
These plans are highly effective for high-touch products and are a strong source of margin for brands in lifestyle, electronics, fitness, and outdoor categories.
What Is Accident Protection?
Accident Protection gives customers peace of mind by covering damage they may unintentionally cause. This includes damage that would not be covered under a standard warranty or manufacturer’s policy.
Examples of common scenarios:
- A dropped phone that cracks
- A spilled drink on a keyboard
- Scratched lenses or a broken hinge on glasses
- A bike frame that dents in transit or from misuse
What It Covers
Covered incident types are entirely configurable per plan. Common options include:
- Drops and impact damage
- Spills and liquid exposure
- Cracked or broken components
- Excessive wear from normal use
- Minor cosmetic issues (optional)
You can exclude certain types of damage such as:
- Fire or theft
- Intentional damage or misuse
- Lost items (better handled with Shipping Protection)
How It Works
Plan Creation
To create an Accident Protection plan:
- Go to Warranties > Create Plan
- Choose Accident Protection as the plan type
- Add a customer-facing description of what’s covered
- Set pricing tiers (fixed or variable by product)
- Define resolution type (store credit, replacement, repair)
- Choose approval rules (auto or manual)
- Require specific evidence (photo, video, description)
Assignment
Plans can be applied broadly or selectively to:
- Products prone to damage (e.g., phones, glasses)
- Brands known for high value
- Items over a certain price point (e.g., > $99)
Customer Experience
- Customer adds Accident Protection at checkout
- Coverage is applied to the order upon fulfillment
- If damage occurs, customer logs in and submits a claim
- Claim includes a description and photo/video evidence
- Claim is auto-approved or routed to your team
- Resolution is triggered: reshipment, store credit, or other
This entire process is managed through your branded portal — no outside claims agents, no redirects.
Claim Rules & Automation
- Approval timing
Delay approval for 1–3 business days to allow for review - Auto-approval settings
Automatically approve low-dollar claims or common issues - Resolution methods
- Issue gift card
- Reship same SKU
- Offer customer choice
You can override any automated decision at any time from the Claims dashboard.
Analytics & Optimization
Track:
- Which products have the highest accident claim rates
- Total revenue vs. claims paid
- Average claim value
- Claim approval % and decision time
- Profit by protection plan tier
These insights help you refine pricing and auto-approval logic to optimize margin while minimizing risk.
Best Practices
- Bundle accident protection with extended warranties for a tiered offer
- Use urgency language (e.g. “Protect it now before it ships”)
- Recommend protection for high-incident SKUs using tags
- Add accident protection in your post-purchase upsell flows