- Thimble (formerly known as Verifly), the first and only platform to offer short-term liability coverage for small businesses, announced it raised $22 million
Thimble (formerly known as Verifly) — the first and only platform to offer short-term liability coverage for small businesses and independent workers — announced it has raised $22 million in Series A funding. This round of funding was led by IAC with participation from existing investors, including Slow Ventures, AXA Venture Partners, and Open Ocean.
“We’ve reinvented insurance to make it simple, enabling small businesses to succeed on their own terms and take advantage of the flexibility and technology driving the modern economy,” said Thimble co-founder and CEO Jay Bregman.
Thimble is known for introducing short-term micro-policies for purchase by the hour, day, week, month or year — which is available in seconds through its app, web, and partner APIs. For example, Thimble offers affordable and flexible by-the-job coverage to fit the dynamic nature of small businesses in the gig economy. And insurance is available for more than 100 different professions including handymen, landscapers, DJs, musicians, beauticians, and dog walkers.
“Thimble is just the kind of company IAC likes to back – a smart team with a disruptive technology that aims to shake up a traditional category,” added Michelle Arbov, Head of M&A at IAC. “Jay and team are poised to redefine insurance coverage for the modern workforce – we’re excited to see what they can do.”
In the past, liability policies were only available for annual purchase and it posed a significant cost barrier for small businesses and sole proprietors. And it also left many uninsured and unable to accept jobs that require proof of insurance.
Thimble has seen early success in bringing an entirely new insurance product to market, which has now been approved by regulators in 48 states. The policies are underwritten by insurance industry leader Markel.
Thimble already sold over $100 billion in aggregate exposure and is on pace to sell 100,000 policies by year end to a market unserved by traditional insurers. In fact, 75% of Thimble’s customers are new to business insurance altogether thus showing the company’s ability to capture the trust of small businesses unable or unwilling to buy into traditional annual policies. And 50% of Thimble policies sold cover a single day or less.
“By breaking down barriers and leveraging technology, Thimble is doing more than bringing traditional policies online — it is leading the charge to better match insurance needs to the modern worker and delivering it in a way that will make insurance more like other industries,” explained Scott Whitehead, Managing Director of Markel. “The insurance industry generates over $100 billion of small business premium in the US alone, and that’s without the 40 percent of sole proprietors who do not currently purchase business insurance.”
Rebranding from Verifly to Thimble enables the company to expand from its roots as a pioneer of drone insurance to a full partner for all modern workers and small businesses as they grow in the on-demand economy. And Thimble will not only be a partner for small businesses and workers who buy coverage directly through the app, but it is also a partner for insurance brokers and independent agents as well who can use the service to provide short-term coverage options to clients with zero touch.
