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New Product Offers Income Protection for Katapult Customers

PLANO, Texas, June 06, 2024 (GLOBE NEWSWIRE) -- Katapult Holdings, Inc. (NASDAQ: KPLT), an e-commerce-focused financial technology company, announced the launch of Katapult Layoff Insurance, powered by Harmonic today. 

This new offering provides a cash benefit of up to $2,000 for customers facing involuntary job loss. For a low monthly payment, Katapult customers can secure this critical financial buffer, enhancing their ability to navigate unexpected financial hardships.

Katapult’s latest offering underscores the company’s continued dedication to providing critical financial solutions to nonprime consumers. Federal Reserve data show that 37% of US adults could not cover a $400 emergency expense without assistance. Layoffs can severely impact finances, and Katapult Layoff Insurance powered by Harmonic, offers a safety net and peace of mind for those impacted by a job loss.

“We selected Katapult as a strategic partner for our Layoff Insurance program because they are very upfront and transparent in dealing with one of consumer's biggest fears - losing their job and being unable to make their payments,” Harmonic’s CEO and co-Founder Andrew Drake said. “By offering Layoff Insurance to their customers, Katapult gives their customers a chance to stop worrying about one thing that isn't normally mentioned in an online financial transaction - how are payments going to be made if the customer loses their job?”

Customers can access Katapult Layoff Insurance through Katapult’s mobile app and website. Enrollment is immediate, with policyholders becoming eligible for a claim after a 90-day waiting period. This enables customers to claim their benefits quickly and easily by showing proof of eligibility for state unemployment benefits.

Key features of Layoff Insurance include:

• Simple claims process: Fast receipt of funds upon submission of required documentation.

• Flexible payout choices: Freedom to receive the $2,000 payout via check or apply the benefit directly to a Katapult lease.

• Supplements existing benefits: The payout is in addition to government income assistance or severance.

• Continued Coverage Option: Customers can choose to extend their insurance post-lease for uninterrupted protection.

"We are excited to bring this new offering to our loyal consumer base," said Orlando Zayas, CEO of Katapult. "Income protection insurance directly addresses the financial vulnerabilities faced by many Americans who are experiencing an involuntary layoff. By opening up access to this new offering alongside our innovative lease-to-own (LTO) solution, we continue to provide underserved consumers with financial resources they need to power their daily lives.”