Scheme zone: Cycling proficiency

Hiscox's bespoke scheme for bike shops beats even a crash helmet for protection

Cycle shops do more than just sell bikes. They also serve as centres for cycling communities across the UK, offer repair services and hire facilities, and even arrange cycling events.

That being the case, their insurance needs are complex and specialised, which is why Hiscox has worked in partnership with cycle insurance experts Butterworth Spengler Insurance Group and industry body ActSmart to develop a new product aimed specifically at cycle and other outdoor pursuits retailers.

“The key thing is that it’s a policy tailored to individual needs,” says Jonathan Harrison, Marketing and Communications Executive at ActSmart, a network of specialist retailers, of which about 1,000 are bike shops. “One of its best features is that it allows retailers to raise the value of their seasonal stock.

“During peak months of trading, typically the summer, cycle shops will have more stock, and the Hiscox policy allows them to choose the three-month period of the year when they can expand the coverage.”

Cycle shops that offer hire and repair services are also covered in the new policy. “There’s also a discount for retailers if the repair side of their business is accredited with Cytech, the benchmark of quality in the industry,” Jonathan says.

Butterworth Spengler Insurance Group has operated a specialist scheme for cycle shops for more than 20 years, and worked closely with ActSmart to develop the new policy, which also extends to other outdoor pursuits retailers with similar characteristics. When it was looking for an insurer partner that had the flexibility to offer what was needed, Butterworth Spengler found that Hiscox was the natural choice.

“They were very easy to deal with,” says Phil Coffey, Operations Manager at Butterworth Spengler. “As they have a dedicated schemes team, you only have to talk to one or two people to get a decision. They don’t have to refer it through various levels of management.

The Hiscox schemes team saw the potential of developing a market-leading retail product. “Cycles and outdoor pursuits interested us because we were looking to enter the specialist retail sector,” says Simon Ratcliff, Scheme Underwriter at Hiscox. “It is the first time Hiscox has developed a bespoke retail product and, as it also promotes healthy living and a green lifestyle, it was a really good fit for us.”

The policy’s bespoke nature suits ActSmart perfectly. “A fully comprehensive policy is the most important thing,” says Tony Jones, the company’s Business Development Manager. “It’s crucial that the policy does what it’s supposed to do when it’s time to make a claim. You need a broad policy to give you peace of mind.”

Simon agrees: “The customers the scheme is aiming for are the knowledgeable independents,” he says. “They’re people who are enthusiastic about their trade and will appreciate the policy’s specialist features.”

Phil Coffey’s happy with the product, too. “Our enquiry rates have doubled,” he says, “and we’ve increased conversion rates from 40% to 60%. The conversion rate on the new product has been quite spectacular.”