Dinghy picks up backing from Balderton for its flexible freelancer insurance – TechCrunch
Insurtech was one of the big VC bets of 2017, and it’s expected to stay that way into the new year as startups discover gaps in the insurance market.
New types of products have already been introduced here, such as Gig Economy insurance from Zego or Pay-as-you-Drive insurance from Cuvva, which deals with changes in the way we work and live .
This trend is continuing Dinghy, a new startup that offers “flexible” insurance for freelance professionals, all of which are provided and managed via a mobile app. The London-based company, which officially launches today, also announced $ 1.2 million in seed capital led by Balderton Capital, including unnamed industry angel investors and insurance investment company ReSolution.
Dinghy is primarily aimed at technology developers, designers, and consultants, but can insure any professional and offers a range of insurance coverage. This includes professional liability, equipment protection, public liability, and cyber liability. The latter was developed in the event that client data that you are processing is lost due to a cyber attack.
However, the company’s main differentiator is that it is mobile and more flexible than traditional insurance products in this area.
“Traditional insurance is a slow and drawn-out process that is not intended for freelancers,” said Rob Hartley, co-founder of Dinghy. “Also, traditional insurers don’t offer freelancers the option to change their insurance when they’re not working. Therefore, freelancers either pay for the coverage they don’t need or, worse, cancel their policy and throw away the coverage they just paid for. “
In contrast, Hartley says, dinghy is being designed from the ground up by freelancers (with over 39 years of insurance and engineering experience), for freelancers. The resulting product enables insurance coverage to be applied for and managed online via the dinghy app. This includes changes to your policy with no administration fees.
“Freelancers can change their work status to save money on their insurance when they are not working, but still keep their insurance coverage,” he explains.
In addition, the application process is available online 24/7 so you don’t have to wait in line to submit an application. This also means that damage claims for devices are processed around the clock. Dinghy undertakes to exchange devices within 24 hours of notification. If that is not possible, the startup states that they can get an immediate cash settlement so you can get what you need as soon as possible.
“We know that freelancers rely on their equipment to work. So we wanted a solution that met their expectations of being served as quickly as possible, ”says Hartley. Dinghy also calculates fees retrospectively to match its target customer, who is looking for payments himself at some point.
Dinghy co-founder added, “We believe our primary customers are tech professionals, business consultants and designers looking to get insurance based on employment contracts. However, we hope to reach the creative industries that don’t usually buy insurance as it is painful and confusing. and show them that there is a better way to insure their business risks. “
As for other insurance products next, Hartley doesn’t want to give too much away lest he alert competitors. Obvious loopholes, however, include accident or illness coverage, late or unpaid bills, and travel insurance.
Balderton Capital partner Rob Moffat believes that the traditional insurance model does not provide the affordable and flexible insurance coverage that many freelancers need to fulfill their own flexible way of working.
“There is a great opportunity for a company offering professional indemnity insurance and other policies for a ‘pay as you use’ model that the Dinghy founders deeply understand through their unique combination of insurance and freelance experience,” he says.