(Image source: Pie Insurance homepage.)
Pie Insurance, a Washington, D.C.-based startup that began selling workers’ compensation directly online earlier this year has expanded into California. The company, which also offers small business insurance, also sells workers’ compensation insurance in Arizona, Colorado, Georgia, Illinois, Louisiana, North Carolina, Tennessee, and Texas.
“Our entrance into the California workers’ compensation market is a significant milestone for Pie, representing our ninth state launch in the past six months,” comments John Swigart, co-founder and CEO, Pie Insurance. “California is the sixth largest economy in the world yet includes many underserved small businesses. We look forward to providing these small businesses with the guidance and tailored insurance policies they need to flourish.”
Pie reports that its research suggests that 80 percent of small businesses overpay for worker’s compensation insurance, by as much as 30 percent. The company says it uses sophisticated algorithms to segment and price workplace risks, enabling it to accurately price policies and offer savings to its small business customers.
According to the U.S. Small Business Administration, small businesses employ nearly half of California’s workforce, with 6.8 million employees, and create nearly 200,000 new jobs a year. Workers’ compensation requirements in California are among the most stringent in the United States—businesses with one or more employee must carry coverage, and penalties for business owners who fail to meet workers’ comp obligations can include six-figure fines and even jail time.
Transparency, Fair Pricing and Convenience
“Purchasing workers’ compensation insurance in California has historically been a confusing, often expensive experience for small business owners,” Swigart remarks. “With our launch in the state, we’re bringing transparency, fair pricing, and convenience to California small business owners.”
“Looking forward, our goal is to be available in states representing over 60 percent, of the US market by the end of 2018, and nationwide in 2019,” Swigart adds.
Pie Insurance’s investors include Sirius Group (Hamilton, Bermuda), a global specialty insurer and reinsurer; Greycroft; Aspect Ventures; Moxley Holdings, an early stage venture capital firm for data-enabled businesses; and Elefund, an early stage venture firm with seed investments in FinTech businesses. The Sirius Group provides insurance backing with $2.5 billion of A-rated insurance premium capacity.