Geico does not do heavy industry commercial auto.
It says GEICO COMMERCIAL INSURANCE right on it. Chances are the insured seriously misrepresented the nature of the business to the rep who took the policy over the phone, or in person.
Once U/W pulls the digital registration ( as they do on ALL COMMERCIAL POLICIES- this is not a witch hunt) and determines the course of business of the insured, standard underwriting practices are applied.
They cover briefcase business, thats about it. They will do some light industrial uses- such as landscaping ( but no gasoline transport) construction workers trucks ( but no oxy and acet, etc)
It could have been a popcorn company- it does not matter.
Most states require that insurance companies notify the insured in writing if their course of business does not meet their underwriting criteria, and what that criteria is - in this case, the class of business.
They also don't insure welding rigs over 22k GVW, or , and here's the important part here :vehicles that transport hazardous or flammable materials for a profit.
This is not a gun issue. This is a "we don't insure certain classes of business due to the liability involved" issue.
FWIW- as an auto agent- I used to get a lot of these types of letters in my office.
We usually got them when placing business that the insured didn't want to disclose to an agent in person- so they called someone over the phone who didn't ask the right questions. Licensed agents who make money on the retention of business, not just point of sale- do.
Underwriting always does. They just don't get to ask it over the phone during the sales call. They don't get the opportunity.
Chances are ( more than sure on this one- knowing GEICOs regular business practices) that the underwriter called the insured, and asked about all his daily activities using the vehicle.
The insured told him, and it involved transporting firearms and/or ammunition as the course of business.
Sorry folks- they are considered hazardous or dangerous cargo. Less so the firearm- moreso the ammunition, but they do put them together. No, an underwriter will not willingly believe that you are in the firearms business, and transport firearms- but never transport ammunition. I was one, and I wouldn't believe it either. You might get a rookie to take a declaration, written and signed under penalty of perjury that you don't do "x, y. or Z"... but if you have an accident, and you are indeed doing " X, y, or Z" they will not cover it.
It happens. I have seen it. People lie to save money. In insurance- this is never a good idea. The coverage you need is out there. Its all about the law of large numbers- they insure the percentage of risk, with a little profit. Think your rate is high ? Consider the risks you are trying to insure.
All those crazy tin-foil hatty ideas we all have about things that can go wrong, once in a million times ? Thats what insurance companies cover you against- so yes, they consider them. They are on the hook for the vagaries of fate- and the certainty of human error.
Sorry, put the pitchforks down, snuff the torches.