CIT Gap Funds invests in Richmond-based Buddy

Center for Innovative Technology (CIT) announced that its early-stage fund, CIT GAP Funds, has invested in Richmond, Virginia-based Buddy, a startup that provides on-demand accident insurance for people with outdoor lifestyles.

The company’s coverage is supplemental to general health insurance plans and was created to offset costs for people who experience injuries while being active outside. The financial terms of the investment were not disclosed but Buddy said it plans to put the funds toward marketing efforts, national expansion and partnerships.

“Outdoor adventures nowadays typically take us down a path of the unknown, where often times unexpected mishaps can occur. We have heard countless stories from our friends and customers who have been injured pursuing their outdoor passions,” said Buddy CEO Charles Merritt in a press release. “Our mission is to help people fearlessly enjoy an active outdoor lifestyle by insuring them against the unexpected costs of an accident.”

The company said that “policies are sold and serviced through API, mobile and desktop website, and chat functions.” Buddy has a software platform that brings its partners, customers and carrier data under one umbrella to foster easier collaboration.

The company was founded in 2017 by Merritt and cofounders Jay Paul and David Vogeleer, who are all outdoor enthusiasts themselves. Buddy’s coverage is lenient, it allows for consumers to pay for coverage for as little as a day, costing $9.72, or up to a year at a time, which could cost up to $600. Benefits are paid directly to consumers. The policy covers most outdoor and adventure sports ad policyholders are charged by the time they have coverage and not by the number of activities they engage in.