Layr, an insurtech company that provides cloud-based tools and services for small business insurance, has announced that it has secured $10 million in a funding round led by Cota Capital. The round also saw participation from The K Fund, HSCM Ventures, Sandbox Industries, and Flyover Capital. The company plans to use the new capital to expand its go-to-market operations and enhance its platform functionality for brokers.
Layr: A Platform for Small Business Insurance Management
Layr was founded in 2019 by Phillip Naples, a veteran of the insurance industry who saw the need for a modern and efficient solution for small business insurance. Layr’s platform aims to streamline the complex and manual workflows of small business insurance by leveraging data and automation. With Layr, brokers can serve up to six times more small business clients, increasing their profitability and customer satisfaction.
Layr’s platform offers a white-labeled, secure online portal for small business owners, where they can shop for or renew coverage, file claims, generate insurance documents, and pay bills online at their convenience, 24/7. Layr also provides brokers with insights and analytics to optimize their small business insurance operations and grow their revenue.
Small Business Insurance: A Growing and Underserved Market
According to Census Bureau data, more than 5 million small businesses were created in 2022, a 40-plus percent increase from pre-pandemic levels. These businesses require insurance to protect themselves from various risks and liabilities, creating a huge opportunity for brokers to tap into this market. However, small business insurance policies are also inefficient and expensive to manage due to legacy systems and licensed staff requirements.
Layr claims that it solves the problem of small business insurance at scale by combining industry know-how with technology that modernizes the policyholder experience. Layr’s platform is compatible with any insurance carrier and product, and can integrate with existing broker systems and workflows. Layr also claims that it can reduce the cost of servicing small business insurance by up to 80 percent, while increasing customer retention and referrals.
Layr’s Vision and Future Plans
Layr’s founder and CEO, Phillip Naples, said that the company’s vision is to bring small business insurance into the 21st century, and to provide a seamless and painless insurance experience for both brokers and policyholders. He added that the company is thrilled to partner with Cota Capital and other investors who share their vision and support their growth.
Bobby Yazdani, founder and partner of Cota Capital, said that Layr is disrupting the small business insurance market with its innovative platform and business model. He said that Layr is well-positioned to become the leading platform for small business insurance management, and that Cota Capital is excited to help Layr achieve its goals.
Layr currently serves over 300 independent insurance brokerages across the United States, and has processed over $100 million in premiums since its launch. The company plans to use its new funding to expand its team, enhance its platform features, and grow its customer base. Layr also plans to launch new products and services for small business insurance in the near future.
