Liability Insurance Is the Next Product to Be Unbundled
Omri Stern, the founder of Jones, recognized the need for more affordable liability insurance products for independent contractors in the real estate and construction industries. Traditional annual insurance policies can be expensive, leading many contractors to forego bidding for projects. To address this issue, Jones offers liability insurance policies on a project basis, providing a more cost-effective and precise underwriting approach. By issuing policies for each project, Jones takes into account the specific risk profile of the project, including factors like asset location and team experience. This granular data allows them to better price the policies offered on their platform.
Jones operates as a marketplace for contractors to find insurance carriers and assists in the entire coverage process, including claims facilitation and compliance gap filling. The business model of offering unbundled insurance services aligns with the trend seen in various industries, driven by new technology and consumer demand for more personalized options. By breaking down bundled offerings, companies like Jones can provide more valuable services tailored to the needs of individual users, leading to shifts in consumer behavior.
Overall, Jones aims to address the unique liability insurance needs of independent contractors in the real estate and construction industries by offering project-based policies that are more affordable and accurately tailored to the specific risks of each project.
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