INSUBCONTINENT EXCLUSIVE:
The insurance industry, sleepy and ancient, is ripe for disruption
We’ve seen companies like Lemonade, Hippo and Rhino get in on that opportunity
Today, an insurtech company focused on small business insurance has raised $18 million to keep growing.Meet Huckleberry, whose Series A was
led by Tribe Capital, with participation from Amaranthine, Crosslink Capital and Uncork Capital.Huckleberry launched in 2017 to offer
business insurance, including workers’ compensation and general liability, all through an online portal.Small business insurance coverage
is not like car insurance or renters insurance
It’s not as simple as filling out a few forms and getting a quote
Even if a few platforms do have algorithms for providing quotes, you can’t really close the deal unless you get on the phone.It’s an
incredibly tedious and stressful process
In fact, Huckleberry co-founders Bryan O’Connell and Steve Au first came up with the idea for Huckleberry when they were seeking out their
own small business coverage for a previous startup idea.The industry itself is incredibly fragmented, which is caused in part by the fact
that small business coverage underwriting varies wildly from business to business
For example, the policy for three or four restaurants might look relatively similar
However, a fast food restaurant might be identified as a higher risk with regards to workers’ compensation than a Michelin-star
restaurant, where workers might be more eager to get back to work and take home their tip money
These differences come in the form of location, operations and many other factors, as well as business vertical.Huckleberry has worked to
build out myriad coverage verticals, including food and beverage, fitness, retail, legal, healthcare, hair and beauty and more.The firm
offers worker’s comp, as well as a package policy that includes general liability, property and business interruption insurance
Customers also can purchase add-ons like hired and non-owned auto insurance, employment practices liability insurance (EPLI), liquor
liability insurance, employee dishonesty coverage, professional liability insurance, equipment breakdown coverage and spoilage
coverage.Huckleberry isn’t itself an insurance carrier, but does have the authority to underwrite and sell policies on behalf of the
That said, Huckleberry’s expansion both by vertical and geography is more difficult than your average software startup
The regulatory landscape of insurance in the U.S
goes state by state.“Our biggest challenge is navigating 50 states’ worth of extremely complicated regulations on something that is much
more complicated than a software product,” said O’Connell
“We’re trying to protect individual workers and businesses all while staying fully compliant in every market.”
