The COVID-19 pandemic forever changed the small business landscape, and with it, the insurance needs of entrepreneurs across industries. Five years later, the effects are still felt in how businesses operate and manage risk. For brokers, staying ahead of these shifts is essential to providing relevant, adaptable solutions.

And with Thimble’s flexible coverage options—from on-demand to annual policies—brokers are empowered to meet the evolving needs of small businesses. According to a report by the National Association of Insurance Commissioners (NAIC)1, nearly 40% of small businesses in the U.S. held business interruption (BI) insurance pre-pandemic. However, the majority of these policies did not cover pandemic-related losses, leaving many businesses unprotected during critical shutdown periods.

New Risks, New Products: Insurance Evolution Post-Pandemic

COVID-19 exposed risks that many small businesses had not really anticipated. From supply chain disruptions and cyberattacks, to health-related business interruptions. The insurance industry adapted and responded with new, more tailored products.

Addressing Business Continuity Gaps

Policies now include more “nuanced” pandemic-related triggers, addressing gaps that impacted businesses during COVID-19. Estimates suggested that BI losses during the pandemic exceeded $300 billion per month for small businesses (NAIC).1

Cyber Crime Threats Increase by 600% 

With remote becoming more common, protecting against cyber threats is more important than ever. Cybercrime increased by 600% during the pandemic as businesses rapidly shifted to digital operations (Forbes).2

Gig Economy Boom

The surge of gig workers and new wave of small businesses are demanding flexible coverage options. The gig economy is expected to grow to 86.5 million people in the U.S. by 2027, driving demand for short-term, adaptable insurance solutions (Statista).3

How Thimble Meets The Modern Needs of Small Businesses Post-Pandemic

Thimble offers brokers tools to sell on-demand policies for short-term needs, as well as monthly and annual policies. This flexibility allows small businesses to get the coverage they need—when they need it—without being locked into long-term commitments. Let’s look at some of the reasons Thimble’s coverage options appeal to Brokers and small businesses.

Digital Transformation: A New Standard for Brokers

One of the most significant changes accelerated by the pandemic was the shift toward digital. Clients now expect seamless online experiences, from getting a quote to filing a claim. A McKinsey report found that insurance companies accelerated digital transformation by three to five years due to the pandemic.4

Why Brokers Are More Important Than Ever

The insurance industry is more complex than ever, and small businesses need trusted brokers to navigate new risks. A survey by the Insurance Information Institute found that 70% of small businesses now rely on brokers for guidance in selecting appropriate coverage.5

How Thimble Supports Brokers in the Digital Age

  • Digital Activation & Support
    Thimble’s platform empowers brokers with instant quoting and policy issuance tools, providing a modern, efficient customer experience. Our tech-driven approach ensures that brokers can meet clients’ expectations for fast, hassle-free service.
  • Flexible Coverage Terms
    Options for day-of coverage, including policies for the hour, day, week, month or year are a small business owner’s dream. A report by Deloitte found that 60% of small businesses now prioritize flexible, customizable insurance policies over traditional annual plans.6
  • Lightning Fast Quotes, Coverage, and Changes
    Immediate, real-time appetite checking tools as well as a digital quoting and underwriting processes make the entire experience fast – which is imperative for small businesses and gig workers who need to move quickly.

Shifting Customer Behavior: What Small Businesses Want Now

Post-pandemic, small businesses have new priorities when it comes to insurance:

  • Small Business Owners are seeking flexible, affordable coverage to stay agile in uncertain times.
  • Gig Workers need insurance that fits unpredictable schedules and unique risks.
  • Remote Workforces now require liability coverage for hybrid work setups and digital risks.

Take a Look at Industry-Specific Examples
(Examples are for illustrative purposes only and are not real clients)

How Has COVID-19 Impacted How a Catering Company Addresses Post-Pandemic Insurance?

  • Name: Olivia Host
  • Title: Culinary Entrepreneur (Catering Service)
  • Before the Pandemic (2019): 
    Olivia ran a thriving boutique catering service, with straightforward insurance needs: annual general liability, commercial auto, and workers’ compensation.
  • During the Pandemic (2020): 
    Business came to a halt, and she realized her policies didn’t cover pandemic-related interruptions. She learned the value of more flexible, on-demand policies.
  • After the Pandemic (2024-2025): 
    Olivia now purchases on-demand general liability insurance for individual events!

How Has COVID-19 Impacted How a Personal Trainer Addresses Insurance?

  • Name: Tracy Trainer
  • Title: Personal Fitness Coach
  • Before the Pandemic (2019): 
    Tracy ran in-person sessions at a gym and clients’ homes and had an annual policy that included general and professional liability insurance.
  • During the Pandemic (2020): 
    She transitioned to virtual training sessions and added cyber liability coverage to her policy.
  • After the Pandemic (2024-2025): Tracy now offers hybrid training and enjoys having an annual policy that includes cyber coverage.

How Has COVID-19 Impacted How a Freelance Photographer Addresses Insurance?

  • Name: Cam Shutterman
  • Title: Freelance Photographer
  • Before the Pandemic (2019): 
    Cam booked weddings and corporate events. He had an annual general liability policy.
  • During the Pandemic (2020):
    Events were canceled, so he pivoted to virtual headshots and temporarily dropped his liability insurance.
  • After the Pandemic (2024-2025): 
    Cam found Thimble’s on-demand product and now only purchases policies when he needs coverage so that he has general liability insurance without being locked into a commitment.

How Has COVID-19 Impacted How a Freelance Photographer Addresses Insurance?

  • Name: Henry Handyman
  • Title: Home Repair Specialist
  • Before the Pandemic (2019): 
    Henry did small home repair projects and had an annual general liability policy.
  • During the Pandemic (2020):
    Jobs slowed down, so he opted for short-term policies.
  • After the Pandemic (2024-2025): 
    Henry now prefers Thimble Monthly to pay as he goes with the ability to pause.

Future Proofing Small Business Insurance: Resilience & Flexibility

COVID-19 taught small businesses the importance of resilience. Moving forward, businesses will seek insurance solutions that can adapt to their needs—whether it’s coverage by the job, month, or year, or having the technology and services options available to pivot and scale.

As a Reminder, With Thimble, Brokers Can:

  • Offer flexible coverage options (by the job, month, or year).*
  • Use instant quoting and policy issuance tools to enhance the client experience.
  • Adapt to evolving risks with customizable policies.

Let’s Get Started

Join Thimble’s broker program today and give your clients the flexible coverage they need to thrive in a post-pandemic world.

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Sources:

  1. https://content.naic.org/sites/default/files/jir-za-39-05-el-business-interuption-covid.pdf
  2. https://www.forbes.com/sites/edwardsegal/2022/03/30/cyber-criminals/
  3. https://www.statista.com/statistics/921593/gig-economy-number-of-freelancers-us/
  4. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever
  5. https://www.iii.org/
  6. https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/insurance-industry-outlook.html

 

*Product and activity availability differs by state and insurer appetite.