Insurtech startup Pie Insurance secures $45 million in Series B to provide workers’ compensation insurance for small businesses

All employers are required by law to carry a workers compensation insurance policy, a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue their employer for the tort of negligence. Depending on the state, workers compensation coverage is required for all employers that have five or more employees. A typical small business owner with a few employees can expect to pay around $2,000 to $3,000 in workers compensation insurance premiums annually.

This may not be an issue for big businesses. However, it is a challenge for small business owners. Getting access to easy and affordable insurance is not easy especially if small business owners have to go through the big insurance companies. Enter Pie Insurance, an insurtech startup founded in 2017, with a mission to provide workers’ compensation insurance directly to small businesses through an simple online experience. Pie enables small business owners the independence to buy a workers’ comp insurance policy with modern ease of service.

Today, Pie announced it has closed a $45M Series B funding round to expand geographically, add new distribution sources, and continue to make the entire experience easy as pie for its customers. Pie is now available in 19 states covering more than 60% of the U.S. workers’ compensation market and expects to expand nationally by the end of 2019. Backers include SVB Capital, Sirius Group, Greycroft, Moxley Holdings, Aspect Ventures, and Elefund. To date, Pie has raised $61 million to fund its innovative approach toward workers’ compensation insurance for small businesses.

Founded in May 2017 by CEO, John Swigart, the Washington, DC-based Pie Insurance is a new workers’ compensation insurer with a direct distribution model and a fully digital experience. Pie Insurance is a workers’ compensation insurance company that provides workers’ comp coverage to small businesses through a simple online experience. Offering A.M. Best A rated insurance, we leverage data analytics, easy-to-use online features, and a seasoned team of insurance experts to revolutionize workers’ comp for small businesses.

As a technology-enabled workers’ compensation insurance company, Pie leverages extensive, high-quality data sets to segment and price small business policies, accurately assessing risks and passing savings on to small business owners. “We are impressed by the momentum Pie has achieved in less than a year,” said Tilli Kalisky-Bannett, Partner at SVB Capital. “We’re thrilled to join this phenomenal team in their next phase of growth.”

Pie sold its first policy in March 2018, and in the first 11 months since launch the company has generated more than $10 million in written premium as thousands of small business owners have been drawn to the company’s easy-to-use digital experience and competitive prices. According to Pie’s proprietary analysis, 80% of small businesses are overpaying for workers’ compensation coverage, often by as much as 30%.

“In addition to their strong growth, Pie has produced outstanding underwriting results,” said Ian Sigalow, Co-Founder and Partner at Greycroft, whose Growth Fund participated in this financing. “The company is positioned to make a huge impact on the small business market for commercial insurance.”

“I’m so proud of what our team has accomplished in a short period of time,” said Pie Co-Founder and CEO John Swigart. “We’re grateful to work with such supportive investors to take Pie to the next level and fundamentally change the way small businesses get workers’ compensation insurance.”