Business Insurance from Geico – What You Need to Know

Business Insurance from Geico

Geico, a dominant player in the personal auto insurance market has learned a thing or two about marketing over the years and now offers business insurance.

Geico is pretty synonymous with low-cost cheap insurance and has gained significant traction in attracting business owners and small business owners to their website to purchase business insurance coverages.  This includes Small business insurance, BOP policies, general liability insurance, workers compensation, and professional liability.

What is not clear is that a small business owner is not really buying insurance from Geico insurance for business.

Small business insurance from Geico is actually operating as a broker or agent for one insurance company depending on the line of business.

For example, a search for small business insurance Geico will bring you to a Geico Insurance Company webpage for Business Owners Insurance and an opportunity to get a BOP quote right online.  Before jumping to the quote there’s information on what is a BOP or Business Owners Policy, who needs a Business Owners Policy, and then a list of other business insurance policies available from Geico.

If a business owner clicks the button to Get a BOP Quote, they’re brought to the Hiscox Insurance Company’s co-branded Geico page.

Now there’s nothing wrong with Geico selling small business insurance this way, but I think what needs to be clear is that you’re not getting a small business insurance policy from Geico, they are the broker and Hiscox is the insurer.

I think the problem which may not be clearly evident to a business owner is that you’re giving up choice when you buy small business insurance through Geico.  They’re only offering you one option.  Hiscox.

Now, Hiscox is a good insurance company, but there are many others out there that also do a great job on small business insurance.

Wouldn’t you want the choice to select between different quotes and compare rates, costs, coverages, and options?

Also, if you’re protecting your business – probably the biggest, or one of the biggest assets you own, wouldn’t you want to speak to an expert about your choices and get counseling on what to buy and how to buy it?  If you’re going on Business Insurance from Geico and doing a quote online, you’re on your own to make buying decisions that you may know nothing about.

You can also go on Geico Business Insurance for General Liability and Professional Liability insurance which are also sold by Hiscox.  If you’re looking to purchase workers compensation on Geico’s website you’ll be directed to biBerk to complete that transaction.  It seems that the only form of coverage that Geico actually underwrites and sells for business owners is business auto insurance.

Again, there’s nothing wrong with this strategy.

It’s actually a bit genius of Geico to sell to the small business owner marketplace by trading on their name as a very competitive cheap player in the insurance world.  I just think that business owners that are looking to Geico for business insurance should know that they are not the insurance company in most of these product sales, but rather a broker or agent for other companies.

What’s the alternative for business owners looking for BOP insurance or other business insurance coverages?

There are a lot of buying options out there and I’ve written about them in the past, in fact, here’s a video I did on that not too long ago.  How to Buy Small Business Insurance:

Here’s the bottom line, and I mentioned it earlier.  Your business does or will represent a significant chunk of your personal net worth.  Does it make sense to buy insurance that protects that asset in a do-it-yourself fashion online without guidance from an expert?

Or, does it make sense to use an expert in business insurance who represents multiple insurance companies and can review your options to make sure you’re getting the best value for your premium dollar?  It’s important to know that using a professional insurance broker or agent doesn’t cost you any more than buying direct.

If you buy a Hiscox policy from Geico or from me, or any other broker, the price is going to be the same.

The same is true if you’re buying a Travelers, Hartford, CNA, Chubb, or any other small business insurance company directly online or from a broker, the premium is going to be the same.

Last point.

Small Business Insurance from Geico offers BOP policies, Professional Liability, Workers Compensation, and Commercial auto, and cyber insurance, but it’s not clear if they can offer umbrella coverage or other important business insurance policies that many small businesses purchase.  That means you may need to go elsewhere for other coverages and then risk the proper coordination and structure of your insurance program.  Something to think about.

Thanks for read this post or watching my video, my name is Gordon Coyle and if you’re looking for help on your business insurance, give me a call, let’s chat.  No pressure, no sales gimmicks just some conversation to see if I can help you and if we might be a good fit for your business insurance needs.  I work in all 50 states and love solving insurance and risk problems and issues for business owners.  To get started, just click the button below and let’s connect.  Thanks!

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