What Are The Risks Of Amazon Key

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Amazon recently announced Amazon Key, a new service allowing for delivery when homeowners aren’t home by giving drivers a special digital key.

With the help of a compatible smart lock and security camera, delivery drivers will be able to unlock the front door and deliver the package inside, all while the customers watches from their smartphone.

But Michael Macauley, CEO of Quadrant Information Services, questions whether the security risks, privacy concerns, and insurance implications are worth the “convenience”.

“Amazon Key is still in the early stages – there are so many questions surrounding liability if a problem were to occur during delivery.” – Macauley

Macauley questions:

  • Who’s liable if a delivery person falls or hurts themselves inside of a home?
  • For homeowners with pets, what if they get loose through the door once it’s opened by the delivery person?
  • Worse yet, what if a pet attacks the delivery person?

“In any of those situations, will Amazon be held liable or will the homeowner be at fault?” asks Macauley.

And what about hacking possibilities? Macauley adds that smart locks are also still in their infant stages. Security experts aren’t completely sold on them, due to security flaws that could leave you more vulnerable than you’d be using a traditional lock.

Macauley opines that Amazon Key —in theory— is an innovative idea, but the practicality of the service remains to be seen.

“There are just so many things that can go wrong with this service – I’d advise waiting to see how it rolls out and how the above concerns are addressed before jumping on the service,” shares Macauley.

Macauley also questions:

  • What other insurance implications are there with Amazon Key?
  • What are your predictions for the service – do you think any of the above concerns will come to fruition or will Amazon address those effectively?
  • What does the insurance industry need to be aware of with this service?

Quadrant Information Services, headquartered in Pleasanton, CA, provides pricing analytics solutions for property and casualty insurance companies.

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