Boost Receives New York Approval for First Comprehensive Startup Management Liability Product
Our insurtech and embedded distribution partners can now offer fair and affordable D&O, Fiduciary, and EPL coverage to the burgeoning NY startup market on an admitted basis.
Big News for Big Apple Startups
Last year, we announced the launch of Boost’s Startup Management Liability Insurance Product after several months of R&D and close engagement with the state insurance regulators. Today, we’re thrilled to announce that this innovative product recently received approval from New York authorities to officially make our product the first comprehensive startup-focused management liability offering available in the state’s admitted market. With New York’s approval, the product is now available to all startups and privately owned small businesses in one of the country’s leading innovation hubs - and Boost’s own home state!
Boost’s Startup Management Liability Product is live in 20 states, which collectively represent about 90% of venture capital deal volume and with New York’s recent approval, can be offered in almost every startup hotspot in the U.S. including California, New York, Texas, Illinois, Washington, and many more.
As always, we are calling on all tech-enabled MGAs, brokers, agents, and embedded distribution platforms that are interested in partnering with Boost Insurance to offer this game-changing product to their startup and small business customers.
Massive Product Opportunity for Insurtech and Embedded Distribution
According to the National Venture Capital Association, over 10,000 U.S.-based startups received venture capital funding in 2020 alone - with total investment in the segment surpassing $160 billion for the year. This fast-growing startup ecosystem now employs an estimated 2.5 million people across the United States and these trends are not slowing down. The startups of today will represent a meaningful portion of the commercial insurance market of tomorrow - and sooner than you may think.
All startups need fair and affordable management liability insurance in their early days - it’s typically even required by investors in order for a startup to raise capital. However, the vast majority don't have access to the coverage they need and the startup segment as a whole remains considerably underserved by traditional insurers and their one-size-fits-all insurance products. Startups are traditionally deemed ineligible and denied coverage outright under legacy underwriting guidelines for commercial lines insurance products - largely due to their lack of financial and/or operating history. Even the startups that are deemed eligible for coverage are forced to pay exorbitant premiums because insurers unfairly generalize the segment as a high-risk class of business relative to larger policyholders.
“The New York City startup scene represents approximately 15% of venture capital deal volume in the U.S., so Boost receiving approval to offer the only comprehensive startup management liability insurance product in that market opens up a huge opportunity for a wide range of companies that cater to startups. Those companies can now offer Boost's embedded insurance product and expand the value they already drive to their startup clientele - and be 100% sure that they’re receiving the best coverage at the fairest prices.”
-- Alex Maffeo, CEO and Founder of Boost
Ironically, Boost encountered this problem ourselves in the early days of our operations, so we know the pain. We were barely even able to get a quote for basic Directors & Officers coverage from traditional insurers when we were closing our seed round of financing, despite helping innovators offer better insurance products being a core part of our company’s mission!
Nobody is immune to this problem, so we did what any good startup would do – we built a better product ourselves.
Even Bigger Advantages of Partnering with Boost
Our product empowers any company that has startups or small businesses in its customer base to offer the most comprehensive and affordable management liability protection - all through a simple and fully white-labeled digital insurance experience that is embedded directly into their existing workflows and interfaces.
Whether you’re an insurtech, an established broker/agent, a venture capital firm, fintech, bank, or technology company that serves startups - you can now provide a differentiated and valuable line of insurance protection to your customers. Boost’s product can easily be integrated as part of your core business or offered as a value-added product and service to enhance the relationship with your customers.
Boost’s Startup Management Liability Product is built for privately owned companies with between $0 and $150 million in venture capital or other forms of equity financing and offers:
Simple Yet Comprehensive Coverage. We researched the entire management liability insurance market and built our product from the ground up so that it offers startups the coverage that they need, including Directors & Officers, Employment Practices Liability, and Fiduciary coverage.
Fair and Reliable Risk Selection Rates. Boost built a proprietary algorithm that leverages alternative data sets to analyze a startup’s business plan, financial projections, and compliance infrastructure to provide a more intelligent risk assessment.
The Most Affordable Rates on the Market. Our partners have found that Boost’s algorithm and superior risk selection model allow them to quote their customers up to 40% more affordable rates than both traditional insurance companies and other startup-focused products that are on the market.
A Fully-Embedded and 100% Digital Customer Experience. Seamlessly integrated into your existing workflows and interfaces, Boost’s leading API platform enables you to instantly issue policies and deliver them digitally to your customers.
Get Started on the Boost Platform
Learn more about Boost’s Startup Management Liability product.
Interested in offering this product or any others to your customers? Contact us to become a Boost partner today.