As an insurance agent, you want to have all the answers for your clients, acting as a guide to help them navigate the murky waters of business insurance. But with the changing nature of work and the rise of the gig economy, providing a one-size-fits-all business insurance solution has become seriously challenging.

There are now 40 million small businesses with four or fewer employees in the United States, representing 95% of small-to-medium-sized businesses (SMBs). What’s more, 3.5 million new businesses are created annually, 7.6 million people now report working multiple jobs (a 20-year high!), and 66% of millennials say that they want to start their own businesses.

It’s clear that traditional annual insurance plans no longer accommodate the way people work today. The numbers bear this out: among SMBs, 40% are uninsured, 75% are underinsured, and 25% of policies are cancelled in the first year.

There are now 40 million small businesses with four or fewer employees in the United States, representing 95% of small-to-medium-sized businesses.

This translates to a massive opportunity for savvy insurance agents who recognize the importance of providing new, flexible solutions to meet their clients’ needs. Thimble’s on-demand insurance matches the pace of modern business, and our service is resonating with those who may have gone uninsured or underinsured in the past: 73% of our customer base is made up of first-time business insurance buyers.

If you’re not sure just how episodic insurance fits into your agency’s approach, consider these six common customer use cases:

1. A client is getting a new business off the ground, and doesn’t want to commit to a full-year policy yet.

An amateur event organizer decides to go professional, but isn’t sure how much business she will get. A short-term policy premium makes much more sense for her than paying for a full year.

2. A small business owner works a second part-time job which is not covered by his current policy.

An electrician sometimes does wedding photography on weekends. He needs coverage just for the hours that he is working events.

3. A subcontractor is required to carry insurance for a job and wants to extend the insurance to the whole crew.

A subcontractor gets a job requiring insurance and decides she will need two additional workers to complete the job on schedule. She buys a policy and is able to easily add the two workers as crew, thereby insuring herself and her workers for the job.

4. A client’s current annual policy doesn’t provide the coverage limit required for a particular job.

A carpenter is working on a historic site and needs $2M in coverage. His current policy only provides $1M in limits, and his annual carrier will not provide additional limits. He uses Thimble to take out a short-term $2M policy to cover this job.

5. A client, who usually only buys personal insurance, mentions they are doing part-time or seasonal work and does not have a commercial insurance policy in place.

A client’s son is home from college for the summer, and is working landscaping gigs in the neighborhood. Your client wants to take out a short-term policy for him.

6. A homeowner’s policyholder may not realize they are not covered for operating a particular type of side business out of their residence.

A client does woodworking as a hobby and sometimes builds pieces for sale. She is using her garage as a workshop, which is not covered by her homeowner’s policy. She needs a business insurance policy to cover her woodworking.

Small Business Insurance Built for the New Landscape of Work

The episodic small business insurance arranged by Thimble makes it easy for insurance agents to ensure that each of these clients has the insurance they need. While the commission for a short-term insurance policy will be smaller than that associated with annual coverage, the real benefit for agents is in the long game: by providing a solution that meets your client’s exact needs at a fraction of the price they’re accustomed to paying, you’re investing in a relationship that will pay dividends in the long term.

In addition, the time spent issuing and managing a very small commercial liability insurance policy can end up being a lot more than the policy is worth to the agency. Clients love Thimble’s straightforward, easy-to-use interface, which means that when agents use Thimble for these small policies, they can spend less time on customer service and more time focusing their energy on higher value activities that drive revenue for the agency.

Our broker portal makes the logistics of this process as quick and seamless as possible. Through the portal, agents can track clients across time, and attribution is assigned to the agent through a unique link delivered via email or phone. Commissions are processed automatically: we pay a 10% commission on the policy value for anyone referred, across all purchases.

Ready to see what Thimble can do for your insurance agency? Check out our broker portal today.