Boost Your Bike Insurance IQ with BikeInsure CEO on NBDA Podcast

Boost Your Bicycle Insurance IQ with BikeInsure CEO on NBDA Podcast

Welcome to Bicycle Retail Radio, presented by the National Bicycle Dealers Association. Bicycle Retail Radio brings together retailers, vendors, advocates, and thought leaders to have honest discussions about the latest issues facing bicycle retailers. The podcast dives deep into the challenges and triumphs of the bicycle industry, providing an in-depth look at the person behind the profession, aiming to deliver content that is both relatable and thought-provoking, offering real-world tips and insights to help you find success in the bicycle industry. There's a human side to the business, and the podcast aims to share stories, experiences, and strategies that you can apply in your own shop. Whether you're looking for inspiration, practical advice, or a sense of community, you've come to the right place. The National Bicycle Dealers Association has a rich history of supporting retailers nationwide. Founded in 1946 with a mission to strengthen specialty bicycle retailers through education, research, communication, and advocacy, the National Bicycle Dealers Association is proudly supported by our members and our membership. If you'd like to learn more about the benefits of joining, please visit nbda.com.

Heather Mason, NBDA President: All right, listeners, welcome to the Friday Flex version of Bicycle Retailer Radio, produced by the National Bicycle Dealers Association. The Friday Flex is our weekly appointed digest of inspirational and actionable insights you can implement today to take your business to the next level. I'm Heather Mason, NBDA president. Specialty bicycle retailers are the heart of the cycling industry, and since 1946, the NBDA has existed to strengthen these businesses through education, research, communication, and advocacy. If you're not already a member and want to learn more, head over to NBDA.com. All right, welcome to THE FLEX. Today is a very special edition.

I'm excited to have Buzzy Cohn, CEO of BikeInsure, joining me. BikeInsure has been making waves as the go-to bike insurance provider for cyclists and bike shops alike. So, if you're a retailer, you're going to want to listen closely. This episode is packed with information about how BikeInsure works and what it could do for your business. We're going to dive straight into the questions retailers need. We've got all the answers. So whether you're tuning in from your shop floor or you're out on your morning ride, stay with me. This conversation is going to be one you're not going to want to miss. Hey, Buzzy, welcome to Bicycle Retail Radio. Thanks for being here.

Buzzy Cohn, BikeInsure CEO:  Thank you so much, Heather.

Heather Mason, NBDA President:  I am thrilled about this. I like that I get to ask five quick questions and get to know more about you and BikeInsure. It's a lot to take time out of your busy schedule. How are things going for you?

Buzzy Cohn, BikeInsure CEO:  Excellent, excellent. I've got a reputation for 22-minute sentences. So, I will try to keep things dialed in and abbreviated.

Heather Mason, NBDA President:  I love it, I love it. Well, let's learn a little bit more about you.

How did you get involved in the cycling industry?

Buzzy Cohn, BikeInsure CEO: The simple answer is a BIKE ACCIDENT. But if it's OK, I'd like to share some background about myself and my career. And that all ties into what truly led me to the cycling industry. Is that OK?

Heather Mason, NBDA President: Yeah. Please do so.

Buzzy Cohn, BikeInsure CEO:  I'm a lifelong cyclist who's always owned TREK bikes. For the last 20 years, I've always peddled a nice bike. It's one of their Project One custom TREK bikes.

My career began selling electronic messaging services, all permission-based business-to-business, in which I was the second top revenue producer worldwide out of 440 reps during the last eight out of the ten years I worked in corporate America. When I transitioned out of corporate America, I became an entrepreneur re-selling similar SaaS electronic messaging vendor services. It is something that I self-funded and operated successfully for over 17 years. In that business, I was truly able to master the collaborative efforts with vendors and contractors while effectively managing the solutions provided to the commercial clients that I catered to. But it was a business with zero salary and zero benefits. It is similar to bike shop owners, you know, operating their business from scratch.

I repurposed my professional calling in life after having my bike accident. I was riding on a Mother's Day of all other days of the year, going about 20 miles an hour with a small group on a sunny day with flashes of darkness through the trees. And it was one of those perfect storms in which I didn't see or hear a signal when I rode over part of a commercial truck hubcap and destroyed the TREK Madone road bike I was riding.

That led to a three-week post-accident homeowner's insurance fiasco. Ultimately, the home insurance runaround got me transferred on a phone call to the head insurance adjuster for the big carrier.

He thanked me for having pioneer-level status and shared that he wanted to know if it was OK if he shared the context with me, and I said, please. He said, aside from your $5,000 home insurance deductible, if we process this one claim and you haven't had a claim in over 20 years, your premiums at renewal are going to go up between 25 and 60%, depending on the state you live in. I asked to process the claim, and he said, hang on. Furthermore, if there's a second claim within a three-year window, we are required to follow the industry standard. You will be NON-RENEWED. I said you would cancel Pioneer Level Guy. He said the worst thing is that you're non-renewed, and the personal article claims are added to the industry C.L.U.E. report. My response was that it sounded like a blackball list, and I would be uninsurable. He said, those aren't the keywords we use, but you understand it clearly. So, I asked what the solution was. He said it doesn't matter whether you have a fine art piece, an expensive piece of jewelry, or, in your case, a bike to remember these keywords SEPARATE or STANDALONE.

The only product in the market was by Markel at the time, sold by Velosurance and a half dozen other agencies, in which everything was variably priced. And it was a time suck for me to go to that website and answer all of the questions to get a quote that was almost as expensive as the premium that I paid for my auto insurance.

So, the only other option on the market then was the bike brand's crash replacement program, in which they kindly extended a discount to buy a replacement bike.

I was paying monthly for pet insurance for my dog then, and I got quite obsessed with the BIKE INSURANCE void in our cycling lifestyle marketplace. So, I created a simple, affordable, comprehensive, separate bike insurance for our cycling lifestyle marketplace. It is BikeInsure, and today, BikeInsure is the official bike insurance partner of all the large cycling trade organizations USA Cycling, USA Triathlon, League of American Bicyclists, and Adventure Cycling Association.

Heather Mason, NBDA President:  Wow, it's crazy how our life is like the little things that happen along the way to influence our journey. And congratulations on BikeInsure and what you're doing. So, let's give our listeners just what bike insurance is.

Why do bicycle and e-bike owners need bike insurance?

Buzzy Cohn, BikeInsure CEO:  So that's an excellent question. And this is my crusade. My crusade is to show and inform any adult in the United States who owns a bike or an e-bike about the essential need for separate bike insurance for comprehensive bicycle or e-bike investment protection. Unlike homeowner's insurance policies, which are considered catastrophic home loss protection and do not offer adequate coverage for a bicycle, and insurance policies that exclude electric bikes due to their classification as motorized vehicles, BikeInsure provides that comprehensive solution for both. BikeInsure mitigates the costly financial risks related to riding, transit, and theft that all bike owners face. One thing that I always make a practice to do is to make sure that each new customer who enrolls for BikeInsure gets a call from BikeInsure. We always share with our customers that the genius of what you've signed up for is a separate, primary, comprehensive bike insurance that covers bicycles and e-bikes, depending on which one they have, and all of the nonstock-attached accessories and components.

They have a $100 riding and transit accident claim occurrence deductible. And provided they choose theft protection, it has a $250 per occurrence deductible. And when I say genius, the genius is if they ever require a claim through BikeInsure, it will never impact any other policy they have. So, with my having BikeInsure for my TREK bike today, it will never impact my homeowner's insurance policy if I ever require a claim on this bike through BikeInsure.

Heather Mason, NBDA President: Wonderful.

Buzzy Cohn, BikeInsure CEO:  Can I share a few thoughts on the 'need' related to my partnerships?

Heather Mason, NBDA President: Sure.

Buzzy Cohn, BikeInsure CEO: IMBA, shared with me that their mountain bike members would value the BikeInsure transit protection the most because mountain bikers often commute to their destination trailhead to ride.

USA Triathlon suggested it's no secret that the bicycle is the most expensive component of triathlon, and they were impressed that the partnership with BikeInsure would reduce the financial risk of their members owning a triathlon bike with the bike insurance.

Grand Fondo Guide shared that you wouldn't drive your Ferrari without insurance.

Belgian Waffle Ride commented that just like wearing a helmet is a no-brainer, insuring your bike is a smart move.

These companies get it, and simple awareness is required.

Heather Mason, NBDA President:  Yeah. I mean, it makes common sense to me. But how do Bike Retailers fit in?

What's the value of BikeInsure for the Bicycle retailers?

Buzzy Cohn, BikeInsure CEO:  Bike shops are unique. A BikeInsure partnership with a bike shop enhances the customer's sustainability, profitability, and satisfaction in the United States, as I qualified for you. Bike owners often ride without realizing the essential need for separate bike insurance until they experience the costly accident that I had, have their bikes stolen, or are fortunate enough to be introduced to BikeInsure by their favorite bike shop.

Although a small marketing referral fee is associated with the partnership, the business value is the true benefit. What I mean by that is Cadence Cyclery, for example, in Texas, with their first 50 referrals to sign up for bike insurance, five of them had cycling accidents.

Well, each BikeInsure customer was responsible for their $100 deductible. They were each processed collaboratively with their favorite bike shop of choice, Cadence Cyclery. Almost $20,000 in claims were paid out to Cadence Cycles, so that is the profound value.

And The Bike Line in Indianapolis, Indiana. It's an amazing boutique bike shop that has a uniquely special clientele. The staff there each recommends BikeInsure to every person walking into their store. And one gentleman bought a Bianchi bike. He drove from Kentucky to Indianapolis for two hours because they were the only ones with it. The customer enrolled for BikeInsure. On the welcome call, he shared that he hadn't had a bike accident in over 25 years. Two weeks into his coverage, he was on a group ride. His rear wheel got hit, and he cracked the frame. The claim paid $5,554 for the frame replacement, the labor, the tax, and all new OEM parts facilitated by the local bike shop of choice. In this case, The Bike Line is the benefactor.

And then lastly, a theft example. Gorges Cycles in New York, with the first bike customer referred to BikeInsure for coverage on a Specialized Turbo Vado, enrolled $4,300 plus three non-stock attached accessories, was locked in an upstate New York park. The Specialized Turbo Vado e-bike was stolen, and the customer received $4,712, which was less than the $250 deductible.

In each of those examples, without bike insurance or the BikeInsure involvement, those customers are either lost from our industry or walk back into the bike shop in tears because that's their awakening that there's no coverage on their bike.

Heather Mason, NBDA President:  Yeah, it's so important! It's nice to hear the stories of people who benefited.

I'm hearing that theft with e-bikes is on the rise.

What are your thoughts on bike theft insurance?

Buzzy Cohn, BikeInsure CEO:  BikeInsure offers theft as an option so that those who feel that their bike or e-bike has zero risk exposure to theft don't have to pay for that option.

What would you guess if I asked you what percentage of claims BikeInsure has paid out historically for theft? What would your guess be?

Heather Mason, NBDA President: Oh gosh. I think more people would get into accidents. Maybe 20% for theft.

Buzzy Cohn, BikeInsure CEO: That's it. And this was not a staged Q&A question. That is factually the answer.

The greatest detriment to theft is that it's a total loss. If somebody has got a $4,000 bike and it's stolen, it's a total loss. If an accident broke a derailleur, and it's $400, it's not as significant, but 20% is the answer.

But when bike theft occurs, a bicycle owner desires immediate resolution. Bike owners without bike insurance are likely, once again, at a financial loss. I'll give an example of how BikeInsure compares in the marketplace.

BikeInsure is not a theft replacement warranty, which technically covers a badge stuck on a bike. That company promotes a 45-day claim waiting period while the property is being attempted to be located, and there is a restrictive $2,500 limit.

A great theft example is one of the BikeInsure customers, a lady in Denver whose only means of transportation is her Gazelle e-bike. She had to ride to the local hospital for an emergent medical issue. She locked the e-bike on the bike rack. Eight hours later, she returned, and her Gazelle e-bike was stolen.

It is not a requirement to call BikeInsure in distress, asking what do I do? But the phone rang. The customer dialed 8-8-8-BIKEINSURE. And I'm the individual that answered the call. She was in a panic, and I guided her through what to do. She filed a claim, and on that same day, a claims administrator began navigating her solution. The claim resolution for her bike replacement was facilitated through Mike's Bikes. That was local to her, in Denver. She had purchased the e-bike in Florida and did not have a relationship with a bike shop in Denver. Now Mike's Bikes is her go-to because of her wonderful experience.

Heather Mason, NBDA President:  This seems like a no-brainer.

We need to get more bicycle retailers talking about bike insurance to their customers, making sure that they know the options are available for them, and opting into the program because it sounds like if you get into a crash or, unfortunately, have a theft incident, this is a great opportunity to make sure that the consumer is covered. It places the bike shop at the epicenter of starting that relationship.

What would you ask of our listeners?

Buzzy Cohn, BikeInsure CEO:  So it's a great point and a great question. The unique challenge of working with bike shops is they are proficient in selling hard goods, whereas bike insurance is a needed value. It's a non-tangible solution. Bike insurance is as needed as a bike or e-bike is desired.

It's the bike shop that can make that unique connection to their customer, and it's as simple as if you've got a BikeInsure partnership, then simply say to every adult in your store, BikeInsure it, then ride it. Something that you know captures their attention and may elicit a question. I've had customers walk into bike shops with no affiliation or relationship to buy a pair of socks that have walked out with coverage from BikeInsure. And, you know, there's the awareness that's being created exceptionally well by some bike shops. And if any bike shops or bike brands are interested in expanding their horizons of bike insurance customer awareness, BikeInsure is here.

Heather Mason, NBDA President: Awesome. How would a retailer contact you? Your website is BikeInsure.com. That's B-I-K-E-I-N-S-U-R-E.com. Is there any other contact that you would give Buzzy?

Buzzy Cohn, BikeInsure CEO: Please find the Contact link at the footer of BikeInsure.com. It will get right to the help portal, my bike, and my desk. We are here to help.

Heather Mason, NBDA President:  Excellent, excellent. And yeah, for our NBDA members and NBDA listeners, BikeInsure is a NBDA member. They've been working closely with us to make sure that retailers are supported. They're part of our community. We think Buzzy is fantastic. So if you contact him, I can vouch for him and tell you he will get back to you right away. It seems like a great opportunity to not only put a little bit of extra revenue into your bottom line as a retailer but also to help ensure that your customers are protected in the unfortunate incident that may occur. Buzzy, thanks for coming on The Flex.

Buzzy Cohn, BikeInsure CEO:  Thank you. You've got all the talking points down. You're a BikeInsure Pro now, Heather.

Heather Mason, NBDA President: Well, it's good stuff. Yeah. And I like this kind of questions about a couple of things with you. It gets our listeners up to speed. Buzzy, we appreciate you. I do hope to see you in this coming year. Listeners, thanks for listening. Thanks for being part of our community. If you're yet to join the NBDA or see the events we're doing, go ahead and hop over to the NBDA website. You'll see our full calendar of events there. We have lots happening. The best way is to sign up for our free newsletter, and you'll get our complete calendar of events and newsletter to you weekly. If you want to support the show, don't forget to subscribe! Go ahead and leave a review. I always love that. Thanks for listening, and now go be great.

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