January 29, 2021
How HOMEE has built a consistent & reliable contractor marketplace that reduces risk for all with integrated contractor insurance
Company Overview
HOMEE is the leading technology platform for connecting insurers, policyholders, and skilled service providers in the claims process. The HOMEE platform, in combination with a premier network of 18,000 contractors, is utilized by leading firms in the insurance and warranty sectors to dramatically improve cycle times. HOMEE set out to build a consistent & reliable contractor marketplace that reduced risk for all with integrated contractor insurance.
Marketplace Challenges
- HOMEE wanted to cultivate a workforce built on trust, safety, and accountability with the goal of maintaining a consistent and reliable marketplace that reduces risk and keeps customers, contractors, and HOMEE protected. However, vetting and insuring a contractor workforce is complicated
- Solo contractors simply don’t spend time thinking about insurance, so HOMEE needed to make the process easy to understand, fast, and integrated directly within their platform
Contractor Insurance Challenges
- Contractor marketplaces, like HOMEE, are subject to platform exposure for the independent acts the contractors perform on their platform
- A corporate umbrella insurance policy is expensive, rarely adequately covers actions of the individual contractors, and are often rejected or cancelled by carriers
- Drop-down insurance coverage could, in some cases, provide coverage for individual contractors, however it often comes with a shared limit which can be reached or exceeded quickly. Additionally, this type of coverage could be seen as a benefit to the contractor which could trigger employee misclassification issues.
HOMEE partnered with Coterie to:
- Enable insurance-verification-as-a-service for those contractors already insured in order to reduce the risk associated with inaccurate or inadequate coverage
- Offer simple, inexpensive short-duration contractor insurance that a contractor can simply add on a per job basis – integrated right into the HOMEE platform
The Results
Coterie began providing short-duration contractor insurance policies through HOMEE’s platform as well as insurance-verification-as-a-service in September 2019.
- Over 80,000 short-duration insurance policies have been issued ensuring both HOMEE’s contractors and customer remain protected The average short-duration insurance policy cost for a 1-2 day job is $5-$9
- Thousands of Certificates of Insurance documents have been reviewed, freeing HOMEE from the hassle of verifying contractor COIs, saving them both time and money, and providing further peace of mind
- Contractors are able to increase their business and employers can require insurance for their contractors
What’s even better is that HOMEE’s “Verified” status allows contractors to showcase their always up-to-date insurance status in their marketing materials and communications to customers, boosting their likelihood of obtaining more, and better quality, work.
