Understand how embedded insurance works in the U.S.

Insurance has long been a way to protect people and businesses from unexpected risks. But in recent years, a new approach has been gaining ground in the United States: built-in insurance.

Also known as embedded insurance, this model integrates coverage directly into the purchase of products or services, simplifying the experience for consumers.

Instead of buying a separate policy, customers receive insurance automatically, often at the moment they purchase a car, a trip, or even a digital service. But how does it work in practice, and who can apply for it? Let’s explore.

What is built-in insurance?

Built-in insurance is an insurance policy that is seamlessly included in the purchase of another product or service.

The goal is to remove the friction that usually comes with traditional insurance processes, such as paperwork, long forms, and independent contracts.

For example:

• When booking a flight online, travel insurance is offered immediately as part of the purchase;
• When buying a new smartphone, theft or damage coverage can be included in the final price;
• When subscribing to a ride-sharing service, passenger protection is already built in.

In other words, instead of searching separately for an insurer, the protection is already available at the right time, where it makes the most sense.

How does it work in practice?

The integration of built-in insurance happens through technology. Companies partner with insurers and integrate coverage directly into their sales platforms, apps, or checkout processes.

Here’s how the typical flow works:

1. Customer purchase – The consumer buys a product or service, such as a ticket, car, or electronic device;
2. Automatic offer – Insurance coverage is offered during the purchase process, often as an option already calculated in the price;
3. Simplified acceptance – With just a click, the customer accepts the insurance without needing to fill out additional forms;
4. Digital management – The policy is linked to the account or purchase receipt, allowing for claims or service requests directly through the same platform.

This model leverages APIs (digital integrations) to connect insurers with retailers, e-commerce platforms, and service providers, making the entire experience smooth and fast.

Who can apply for built-in insurance in the U.S.?

One of the advantages of built-in insurance is its accessibility. In most cases, eligibility is broad and depends only on the product or service being purchased.

• Consumers: anyone buying a product or service that offers integrated insurance can apply. For example, travelers purchasing a ticket with coverage or a shopper adding protection for electronics;
• Small businesses: companies that use digital platforms can also benefit. For instance, a delivery service may provide workers with accident insurance automatically;
• Service providers: Professionals offering rides, rentals, or deliveries through apps are often covered by built-in insurance provided by the platform itself.

There are usually no complex eligibility requirements, as the insurance is tied to the purchase rather than to an individual evaluation.

This accessibility makes built-in insurance especially attractive to consumers who might not seek coverage otherwise.

Benefits of built-in insurance

The rise of built-in insurance in the U.S. is explained by its practical benefits for both customers and companies. No separate applications or research, coverage is included instantly.

Policies are often cheaper because they are offered in bulk through partnerships. More people gain access to protection who otherwise might not buy insurance.

Customers feel safer when coverage is automatically linked to their purchases. Businesses can increase customer loyalty by offering value-added protection.

Conclusion

Built in insurance is transforming the way Americans access financial protection. By integrating coverage directly into purchases, it reduces complexity, increases convenience, and expands access to insurance for individuals and businesses alike.

For consumers, it represents peace of mind without bureaucracy. For companies, it opens up new opportunities to strengthen relationships and innovate.

As technology continues to evolve, built-in insurance will likely expand across more sectors, becoming a standard part of the buying experience in the U.S.