SimplyInsured, which helps small businesses compare and purchase employee health insurance plans, closed a Series A of $5.9 million led by Polaris Partners, with participation from Bessemer Venture Partners, Altair.VC, Corazon Capital, and individual investors. The funding will be used to increase the size of its sales and marketing team to about 20 to 30 employees.
SimplyInsured’s rivals include 400,000 local insurance brokers throughout the U.S. and startups like Zenefits (another Y Combinator alum) also help SMBs compare and purchase health plans online. Shah says that SimplyInsured’s advantage is its instant quoting technology. “We have the only 50 state quoting engine for SMBs, and by our cost estimation engine, we can give you apples to apples estimates about the cost of doctors visits, emergency room visits, etc. We are also the only insurance broker that provides every employee with a Mobile ID Card the day their insurance starts.”