What Are The Risks Of Amazon Key

Posted by Jay Bartlett November 13, 2017 2:53 pm Categories: Corporate News, Customer Implementations, New Products, Residential, Technologies Tags: hacking, Insurance, liabilities, Michael Macauley, smart locks.

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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Son of a Salesman

For a lot of us who have made the jump to starting our own business, there’s a foundation of knowledge that came from those who mentored us before our journey began. When reflecting my own journey in the alarm industry, it’s abundantly clear that my foundation is my father. I’m the proud son of an alarm salesman. My dad sold alarm systems door to door, and he sold a lot of them. Aside from being a very personable guy, Dad knocked on more doors, walked into more papered storefronts, and chased more U-Hauls than anyone else I know. He hustled hard and he built lasting relationships along the way. It was not only a recipe for success, but also an example of s stick-to-itiveness for me and my siblings to follow. As kids, we would sometimes watch from the backseat as Dad “walked up deals” whenever a new family or business moved into the neighborhood. He’d walk right up and introduce himself, and would always smile and listen along with caring, thoughtful eyes. It never seemed like a salesman pitching to prospects. It was like he was talking to new friends. When he was invited to go inside the business or home, we would wait in the car with anticipation. More often than not, he returned with a signed contract in hand and the whole family cheered for his victory. It wasn’t uncommon for us to run into those same folks at the local grocery store, church, or a restaurant and he would go out of his way to greet them warmly--never missing the opportunity to introduce us kids with a proud smile. His interactions with his customers outside of their normal business dealings were always returned with warmth—there were lots of hugs, back pats, and double-handed handshakes. Not only were they his customers, but more importantly to him they were friends, too. Our favorite restaurants who were also his clients always welcomed our family on Friday and Saturday nights. Dad often paid the check with gift cards the restaurateurs traded for their alarm system and cameras. He was always sure to tip the waiter separately in cash. Over the years, Dad sold thousands of alarm systems and along the way, he demonstrated to me how to build a successful business through strong relationships, extraordinary service, and an outstanding reputation. Dad also taught me that doors open for those who knock. Throughout the years, the lessons he taught me about persistence, integrity, and relationship-building have helped me in my own career. While I long ago decided not to join the family alarm business, I did become an alarm salesman. Today, I own a national security distribution company where we sell alarm systems to thousands of alarm dealers nationwide. Like my dad with his customers, many of mine have become great friends, some of which I consider family. When people ask me why I didn’t join the family business, I explain that if I was to stand any chance of selling more alarm systems than my old man, I knew I’d have to sell them wholesale! Jake is the Founder and President of SS&Si Dealer Network, an independent distribution company that offers competitive pricing, private labeling, fast shipping, marketing support, vendor programs, and funding options. He also serves as the Associate Director for the Integrators Association of Florida (IAF) as well as the on the Marketing and Communications Committee for The Monitoring Association(TMA). He completed his Bachelors of Arts from Rollins College.