
Lloyd’s Lab innovation accelerator programme has selected insurtech startup Thimble to develop pandemic business interruption insurance for small medium-sized businesses (SMBs).
As part of Lloyd’s Lab, Thimble will develop low-limit parametric contingent business interruption coverage for SMBs against Covid-19 and future pandemics.
The move intends to present insurance as a ‘first line of defense’ that pays small businesses immediately if specific criteria are met– essentially providing an ‘instant stimulus’ while governments figure out the rest.
The business interruption insurance availed by small businesses does not include losses related to pandemics like Covid-19. This has lead to a severe blowback on the industry, with multiple lawsuits filed by small and midsize businesses against their insurers.
Thimble CEO and founderJay Bregman said: “Traditional insurance policies do not work for pandemics because most policies will pay out at the same time.
“No private company can maintain a balance sheet big enough to pay those claims and survive. We can, however, sell smaller policies with lower limits, that would pay out programmatically and instantly if criteria are met– for example, if all the businesses within a certain zip code are forced to close.

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By GlobalData“We’re thrilled to have the support of Lloyd’s on this vitally important programme, as we chart the course for recovery and renewed confidence for our small business partners.”
Thimble’s selection to Lloyd’s Lab is said to follow a series of innovations by the insurtech for the small businesses.
This includes Thimble Monthly, which allows businesses to ‘cut the cord’ from annual policies through rolling monthly coverage, Thimble Pause which enables businesses to place a hold on policies without penalty and without needing to cancel.
Last month, Thimble rolled out a new API for partners who serve the small business and professional services communities.
Recently, the firm partnered with small business insurer Hiscox to offer short-term liability insurance to small business.