Lemonade (LMND) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-39367
Entity Registrant Name	Lemonade, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	32-0469673
Entity Address, Address Line One	5 Crosby Street, 3rd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	844
Local Phone Number	733-8666
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	LMND
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		56,590,529
Amendment Flag	false
Entity Central Index Key	0001691421
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Investments
Fixed maturities available-for-sale, at fair value (amortized cost: $6.5 million and $5.8 million as of September 30, 2020 and December 31, 2019)	$ 6.7	$ 5.9
Short-term investments	15	54.7
Total investments	21.7	60.6
Cash, cash equivalents and restricted cash	575.7	270.3
Premium receivable, net of allowance for doubtful accounts of $0.4 million and $0.2 million as of September 30, 2020 and December 31, 2019	82.8	54.1
Reinsurance recoverable	42.2	20.3
Prepaid reinsurance premium	86.2	1
Deferred acquisition costs	3.3	1.8
Property and equipment, net	5.1	3.1
Intangible assets	0.6	0.6
Other assets	13.9	2.5
Total assets	831.5	414.3
Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)
Unpaid losses and loss adjustment expense	39.7	28.2
Unearned premium	115.3	68
Trade payables	1	0.7
Funds held for reinsurance treaties	52.4	0
Other liabilities and accrued expense	54.1	19.7
Total liabilities	262.5	116.6
Commitments and contingencies (Note 15)
Convertible preferred stock (Series Seed, A, B, C and D), $0.00001 par value; no shares issued, authorized and outstanding as of September 30, 2020; 31,557,107 shares authorized, issued and outstanding as of December 31, 2019, respectively; aggregate liquidation preference of $0 and $480.8 million as of September 30, 2020 and December 31, 2019, respectively	0	480.2
Stockholders' equity (deficit):
Common stock, $0.00001 par value, 200,000,000 shares and 52,000,000 shares authorized as of September 30, 2020 and December 31, 2019, respectively; 56,584,029 shares and 11,784,765 shares issued and 56,584,029 shares and 11,271,228 shares outstanding as of September 30, 2020 and December 31, 2019, respectively	0	0
Additional paid-in capital	855	15.7
Accumulated deficit	(286.7)	(198.3)
Accumulated other comprehensive income	0.7	0.1
Total stockholders' equity (deficit)	569	(182.5)
Total liabilities, convertible preferred stock and stockholders' equity (deficit)	$ 831.5	$ 414.3

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Amortized cost, available-for-sale securities	$ 6.5	$ 5.8
Premium receivable, allowance for doubtful accounts	$ 0.4	$ 0.2
Convertible preferred stock, par value (usd per share)	$ 0.00001	$ 0.00001
Convertible preferred stock, authorized (shares)	0	31,557,107
Convertible preferred stock, issued (shares)	0	31,557,107
Convertible preferred stock, outstanding (shares)	0	31,557,107
Convertible preferred stock, liquidation preference	$ 0	$ 480.8
Common stock, par value (usd per share)	$ 0.00001	$ 0.00001
Common stock, authorized (shares)	200,000,000	52,000,000
Common stock, issued (shares)	56,584,029	11,784,765
Common stock, outstanding (shares)	56,584,029	11,271,228

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Net earned premium	$ 10.5	$ 17.8	$ 65	$ 41.6
Ceding commission income	7	0	7.4	0
Net investment income	0.2	1.1	1.3	2.1
Commission and other income	0.1	0.1	0.2	0.1
Total revenue	17.8	19	73.9	43.8
Expense
Loss and loss adjustment expense, net	6.7	12.6	45.4	30.4
Other insurance expense	3.5	2.3	10.8	6.4
Sales and marketing	22.2	27.5	57.5	64.9
Technology development	5.3	2.8	13	6.4
General and administrative	10.6	4.8	34.6	11.2
Total expense	48.3	50	161.3	119.3
Loss before income taxes	(30.5)	(31)	(87.4)	(75.5)
Income tax expense	0.4	0.1	1	0.3
Net loss	(30.9)	(31.1)	(88.4)	(75.8)
Other comprehensive income, net of tax
Unrealized gain (loss) on investments	0.4	(0.1)	0.6	(0.1)
Comprehensive loss	$ (30.5)	$ (31.2)	$ (87.8)	$ (75.9)
Per Share Data:
Net loss per share attributable to common stockholders—basic and diluted (usd per share)	$ (0.57)	$ (2.78)	$ (3.41)	$ (6.84)
Weighted average common shares outstanding—basic and diluted (shares)	53,997,315	11,178,924	25,935,362	11,079,303

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (shares) at Dec. 31, 2018	24,445,555
Beginning balance at Dec. 31, 2018	$ 180.8
Convertible Preferred Stock
Issuance of preferred stock (shares)	3,622
Ending balance (shares) at Mar. 31, 2019	24,449,177
Ending balance at Mar. 31, 2019	$ 180.8
Beginning balance (shares) at Dec. 31, 2018		10,983,684
Beginning balance at Dec. 31, 2018	(79.1)	$ 0	$ 10.7	$ (89.8)	$ 0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		3,125
Stock-based compensation	0.4		0.4
Net loss	(21.6)			(21.6)
Other comprehensive income	0				0
Ending balance (shares) at Mar. 31, 2019		10,986,809
Ending balance at Mar. 31, 2019	$ (100.3)	$ 0	11.1	(111.4)	0
Beginning balance (shares) at Dec. 31, 2018	24,445,555
Beginning balance at Dec. 31, 2018	$ 180.8
Ending balance (shares) at Sep. 30, 2019	31,557,107
Ending balance at Sep. 30, 2019	$ 480.2
Beginning balance (shares) at Dec. 31, 2018		10,983,684
Beginning balance at Dec. 31, 2018	(79.1)	$ 0	10.7	(89.8)	0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Net loss	(75.8)
Ending balance (shares) at Sep. 30, 2019		11,263,261
Ending balance at Sep. 30, 2019	$ (152.2)	$ 0	13.5	(165.6)	(0.1)
Beginning balance (shares) at Mar. 31, 2019	24,449,177
Beginning balance at Mar. 31, 2019	$ 180.8
Convertible Preferred Stock
Issuance of preferred stock (shares)	4,146,294
Issuance of preferred stock, net of issuance costs	$ 174.4
Ending balance (shares) at Jun. 30, 2019	28,595,471,000,000
Ending balance at Jun. 30, 2019	$ 355.2
Beginning balance (shares) at Mar. 31, 2019		10,986,809
Beginning balance at Mar. 31, 2019	(100.3)	$ 0	11.1	(111.4)	0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		97,625
Exercise of stock options	0.3		0.3
Stock-based compensation	0.4		0.4
Net loss	(23.1)			(23.1)
Other comprehensive income	0				0
Ending balance (shares) at Jun. 30, 2019		11,084,434
Ending balance at Jun. 30, 2019	$ (122.7)	$ 0	11.8	(134.5)	0
Convertible Preferred Stock
Issuance of preferred stock (shares)	2,961,636
Issuance of preferred stock, net of issuance costs	$ 125
Ending balance (shares) at Sep. 30, 2019	31,557,107
Ending balance at Sep. 30, 2019	$ 480.2
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		73,340
Exercise of stock options	0.1		0.1
Release of shares upon repayment of partial recourse loan (shares)		105,487
Release of shares upon repayment of partial recourse loan	0.1		0.1
Stock-based compensation	1.5		1.5
Net loss	(31.1)			(31.1)
Other comprehensive income	(0.1)				(0.1)
Ending balance (shares) at Sep. 30, 2019		11,263,261
Ending balance at Sep. 30, 2019	$ (152.2)	$ 0	13.5	(165.6)	(0.1)
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Ending balance (shares) at Mar. 31, 2020	31,557,107
Ending balance at Mar. 31, 2020	$ 480.2
Beginning balance (shares) at Dec. 31, 2019	11,271,228	11,271,228
Beginning balance at Dec. 31, 2019	$ (182.5)	$ 0	15.7	(198.3)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		54,374
Stock-based compensation	2.2		2.2
Contribution to the Lemonade Foundation (shares)		500,000
Contribution to the Lemonade Foundation	12.2		12.2
Net loss	(36.5)			(36.5)
Other comprehensive income	0				0
Ending balance (shares) at Mar. 31, 2020		11,825,602
Ending balance at Mar. 31, 2020	$ (204.6)	$ 0	30.1	(234.8)	0.1
Beginning balance (shares) at Dec. 31, 2019	31,557,107
Beginning balance at Dec. 31, 2019	$ 480.2
Convertible Preferred Stock
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering (shares)	(31,557,107)
Ending balance (shares) at Sep. 30, 2020	0
Ending balance at Sep. 30, 2020	$ 0
Beginning balance (shares) at Dec. 31, 2019	11,271,228	11,271,228
Beginning balance at Dec. 31, 2019	$ (182.5)	$ 0	15.7	(198.3)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)	92,157
Net loss	$ (88.4)
Ending balance (shares) at Sep. 30, 2020	56,584,029	56,584,029
Ending balance at Sep. 30, 2020	$ 569	$ 0	855	(286.7)	0.7
Beginning balance (shares) at Mar. 31, 2020	31,557,107
Beginning balance at Mar. 31, 2020	$ 480.2
Ending balance (shares) at Jun. 30, 2020	31,557,107
Ending balance at Jun. 30, 2020	$ 480.2
Beginning balance (shares) at Mar. 31, 2020		11,825,602
Beginning balance at Mar. 31, 2020	(204.6)	$ 0	30.1	(234.8)	0.1
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Exercise of stock options (shares)		30,562
Exercise of stock options	0.1		0.1
Stock-based compensation	2.4		2.4
Release of shares upon repayment (shares)		513,537
Release of shares upon repayment	1.3		1.3
Net loss	(21)			(21)
Other comprehensive income	0.2				0.2
Ending balance (shares) at Jun. 30, 2020		12,369,701
Ending balance at Jun. 30, 2020	$ (221.6)	$ 0	33.9	(255.8)	0.3
Convertible Preferred Stock
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering (shares)	(31,557,107)
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering	$ (480.2)
Ending balance (shares) at Sep. 30, 2020	0
Ending balance at Sep. 30, 2020	$ 0
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Conversion of convertible preferred stock to common stock upon closing of initial public offering (shares)		31,557,107
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering	480.2		480.2
Issuance of common stock upon closing of initial public offering (shares)		12,650,000
Issuance of common stock upon closing of initial public offering, net of issuance costs and underwriting fees of $28.9 million	338		338
Exercise of stock options (shares)		7,221
Exercise of stock options	0.2		0.2
Stock-based compensation	2.7		2.7
Net loss	(30.9)			(30.9)
Other comprehensive income	$ 0.4				0.4
Ending balance (shares) at Sep. 30, 2020	56,584,029	56,584,029
Ending balance at Sep. 30, 2020	$ 569	$ 0	$ 855	$ (286.7)	$ 0.7

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Millions	Jul. 02, 2020	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 28.9	$ 28.9	$ 0	$ 0.6	$ 0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (88.4)	$ (75.8)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1.1	0.3
Stock-based compensation	7.3	2.3
Amortization of discount on bonds	(0.4)	0
Bad debt expense	1.4	0
Noncash interest	0	(0.3)
Common share contribution to the Lemonade Foundation	12.2	0
Changes in operating assets and liabilities:
Premium receivable	(30.1)	(26.1)
Reinsurance recoverable	(21.9)	(9.2)
Prepaid reinsurance premium	(85.2)	(3.2)
Deferred acquisition costs	(1.5)	(1.1)
Other assets	(11.4)	(4.1)
Unpaid loss and loss adjustment expense	11.5	11.5
Unearned premium	47.3	33.3
Trade payables	0.3	(0.8)
Funds held for reinsurance treaties	52.4	0
Other liabilities and accrued expense	34.4	12.8
Net cash used in operating activities	(71)	(60.4)
Cash flows from investing activities:
Proceeds from short-term investments sold or matured	55	21
Proceeds from bonds sold or matured	2.2	1
Cost of short-term investments acquired	(14.9)	(54.4)
Cost of bonds acquired	(2.9)	(3.3)
Purchases of property and equipment	(3.1)	(3)
Net cash provided by (used in) investing activities	36.3	(38.7)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting discounts and commissions and offering costs	338	0
Proceeds from release of shares upon repayment	1.3	0
Issuance of preferred stock, net	0	299.4
Proceeds from stock exercises	0.3	0.5
Net cash provided by financing activities	339.6	299.9
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.5	0
Net increase in cash, cash equivalents and restricted cash	305.4	200.8
Cash, cash equivalents and restricted cash at beginning of period	270.3	102.4
Cash, cash equivalents and restricted cash at end of period	575.7	303.2
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 1.1	$ 0

Nature of the Business

Nature of the Business	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business	Nature of the BusinessLemonade, Inc. is a public benefit corporation organized under Delaware law on June 17, 2015. It provides certain personnel, facilities and services to each of its subsidiaries (together with Lemonade, Inc., the “Company”), all of which are 100% owned, directly or indirectly, by Lemonade, Inc. For the list of the Company's US and EU subsidiaries, see Note 1 - Nature of the Business, of the audited consolidated financial statements and related notes thereto for the year ended December 31, 2019 as contained in the Company's final prospectus for its initial public offering of its common stock ("IPO") dated as of July 1, 2020 and filed with the SEC pursuant to Rule 424(b)(4) on July 2, 2020.

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. All figures expressed, except share amounts, are in U.S. dollars in millions. Risk and Uncertainties The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and may adversely impact our business. Although the Company did not see a material impact on its results of operations for the three and nine month periods ended September 30, 2020 due to the COVID-19 pandemic, the Company cannot predict the duration or magnitude of the pandemic or the full impact that it may have on the Company’s financial condition and results of operations, business operations, and workforce. Unaudited interim financial information

Use of Estimates

Use of Estimates	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of EstimatesThe preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, and the fair values of investments.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Cash, cash equivalents and restricted cash The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and December 31, 2019 ($ in millions): As of September 30, December 31, 2020 2019 Cash and cash equivalents $ 575.4 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 575.7 $ 270.3 Cash consists primarily of cash on hand and bank deposits. Cash equivalents consist primarily of money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value. Deferred offering costs The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. In connection with the IPO, the Company incurred total offering costs of $32.4 million, of which $28.9 million was recorded as a reduction to gross proceeds, and $3.5 million was recognized as a component of general and administrative expense in 2019. Recent accounting pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets, as well as available for sale securities, and that they be presented on the financial statements net of the valuation allowance. ASU 2016-13 is effective for the Company’s annual periods beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of ASU 2016-13 on its financial condition and results of operations, with a primary focus on its reinsurance recoverable. Reclassification Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Investments	Investments Unrealized gains and losses The following tables present cost or amortized cost and fair values of investments as of September 30, 2020 and December 31, 2019 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses September 30, 2020 U.S. Government obligations $ 6.5 $ 0.2 $ — $ 6.7 Total $ 6.5 $ 0.2 $ — $ 6.7 December 31, 2019 U.S. Government obligations $ 5.8 $ 0.1 $ — $ 5.9 Total $ 5.8 $ 0.1 $ — $ 5.9 Gross unrealized gains for U.S. Government obligations were $0.2 million and $0.1 million, as of September 30, 2020 and December 31, 2019, respectively. There were no gross unrealized losses as of September 30, 2020. Gross unrealized losses were less than $0.1 million as of December 31, 2019. Gross unrealized gains and losses were recorded as a component of accumulated other comprehensive income. Contractual maturities of bonds The following table presents the cost or amortized cost and estimated fair value of bonds as of September 30, 2020 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of September 30, 2020 Cost or Fair Value Due in one year or less $ 0.1 $ 0.1 Due after one year through five years 6.4 6.6 Due after five years through ten years — — Due after ten years — — Total $ 6.5 $ 6.7 Net investment income An analysis of net investment income follows ($ in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Interest on cash and cash equivalents $ 0.1 $ 0.9 $ 0.9 $ 1.7 Bonds 0.1 0.1 0.1 0.1 Short-term investments — 0.1 0.3 0.3 Total net investment income $ 0.2 $ 1.1 $ 1.3 $ 2.1 Investment gains and losses The Company did not have any pre-tax net realized capital gains or losses for the three and nine months ended September 30, 2020 and 2019. Aging of gross unrealized losses There were no gross unrealized losses and related fair values for the Company's available-for-sale bond securities as of September 30, 2020. The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 U.S. Government obligations $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — Total $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — There were no gross unrealized losses for U.S. Government Bonds for twelve months or more as of September 30, 2020. Gross unrealized losses for U.S. Government Bonds was less than $0.1 million for twelve months or more as of December 31, 2019. The gross unrealized investment losses as of September 30, 2020 and December 31, 2019, were deemed to be temporary, based on, among other things: • the duration of time and the relative magnitude to which fair values of these investments have been below their amortized cost was not indicative of an other than temporary impairment loss; • the absence of compelling evidence that would cause the Company to call into question the financial condition or near-term prospects of the issuer of the investment; and • the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. The Company may ultimately record a realized loss after having originally concluded that the decline in value was temporary. Risks and uncertainties are inherent in the methodology the Company uses to assess other-than-temporary declines in value. Risks and uncertainties could include, but are not limited to, incorrect assumptions about financial condition, liquidity or future prospects, inadequacy of any underlying collateral, and unfavorable changes in economic conditions or social trends, interest rates or credit ratings.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of September 30, 2020 and December 31, 2019 ($ in millions): September 30, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.7 $ — $ 6.7 Total $ — $ 6.7 $ — $ 6.7 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 5.9 $ — $ 5.9 Total $ — $ 5.9 $ — $ 5.9 There were no transfers between Level 1, Level 2, or Level 3 during the three and nine months ended September 30, 2020 and 2019.

Unpaid Loss and Loss Adjustment

Unpaid Loss and Loss Adjustment Expense	9 Months Ended
	Sep. 30, 2020
Insurance [Abstract]
Unpaid Loss and Loss Adjustment Expense ("LAE")	Unpaid Loss and Loss Adjustment Expense The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the nine months ended September 30, 2020 and 2019 ($ in millions): Nine Months Ended 2020 2019 Unpaid loss and LAE at beginning of period $ 28.2 $ 13.1 Less: Reinsurance recoverable at beginning of period (1). 18.5 11.3 Net unpaid loss and LAE at beginning of period 9.7 1.8 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 44.1 32.2 Prior years 1.3 (1.8) Total incurred 45.4 30.4 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 36.4 36.0 Prior years 11.0 (12.0) Total paid 47.4 24.0 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 7.7 8.2 Reinsurance recoverable at end of period (1) 32.0 16.4 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 39.7 $ 24.6 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE Unpaid loss and LAE includes anticipated salvage and subrogation recoverable. Considerable variability is inherent in the estimate of the reserve for losses and LAE. Although management believes the liability recorded for losses and LAE is adequate, the variability inherent in this estimate could result in changes to the ultimate liability, which may be material to stockholders' equity. Additional variability exists due to accident year allocations of ceded amounts in accordance with reinsurance agreements, which is not expected to result in any changes to the ultimate liability. The Company had unfavorable development on net loss and LAE reserves of $1.3 million for the nine months ended September 30, 2020 and favorable development on net loss and LAE reserves of $1.8 million for the nine months ended September 30, 2019. No additional premiums or returned premiums have been accrued as a result of prior year effects. As of July 1, 2020, the Company entered into proportional reinsurance contracts which cover all of the Company's products and geographies, and transfer, or “cede,” 75% of the premium to reinsurers ("Proportional Reinsurance Contracts"). In exchange, these reinsurers pay a ceding commission of 25% for every dollar ceded, in addition to funding all of the corresponding claims, or 75% of all claims. The Company opted to manage the remaining 25% of the business with alternative forms of reinsurance through non-proportional reinsurance contracts ("Non-Proportional Reinsurance Contracts"). Roughly three quarters of the Proportional Reinsurance Contracts run for a three-year term, expiring June 30, 2023 , while the remainder has a one-year term June 30, 2021 . The Company's Non-Proportional Reinsurance Contracts are likewise effective as of July 1, 2020, and have a one-year term. If the Company is unable to renegotiate, at the same or more favorable terms, the Proportional Reinsurance Contracts or the Non-Proportional Reinsurance Contracts when each expires, such changes could have an adverse impact on our business model.

Other Liabilities and Accrued E

Other Liabilities and Accrued Expenses	9 Months Ended
	Sep. 30, 2020
Other Liabilities Disclosure [Abstract]
Other Liabilities and Accrued Expenses	Other Liabilities and Accrued Expense Other liabilities and accrued expense as of September 30, 2020 and December 31, 2019 consist of the following ($ in millions): As of September 30, December 31, 2020 2019 Deferred ceded commission $ 20.9 $ — Ceded premium payable 17.9 3.9 Accrued advertising costs 6.3 7.9 Accrued professional fees 2.6 2.8 Premium taxes payable 2.3 2.6 Employee compensation payable 2.2 1.0 Indirect taxes payable 0.3 0.4 Income tax payable 0.2 0.5 Other payables 1.4 0.6 Total other liabilities and accrued expense $ 54.1 $ 19.7

Convertible Preferred Stock

Convertible Preferred Stock	9 Months Ended
	Sep. 30, 2020
Temporary Equity Disclosure [Abstract]
Convertible Preferred Stock	Convertible Preferred Stock As of September 30, 2020, all shares of convertible preferred stock were converted into 31,557,107 shares of common stock in connection with the closing of the IPO (See Note 10). As of September 30, 2020, there was no preferred stock outstanding. As of December 31, 2019, the Company’s certificate of incorporation, as amended and restated, authorized the Company to issue 31,557,107 shares of par value $0.00001 per share convertible preferred stock. The holders of convertible preferred stock have liquidation rights in the event of a deemed liquidation that, in certain situations, are not solely within the control of the Company. Therefore, the convertible preferred stock is classified outside of stockholders’ equity (deficit) on the condensed consolidated balance sheet. As of December 31, 2019, preferred stock consisted of the following ($ in millions, except for share amounts): As of December 31, 2019 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common stock The Company completed its IPO in which the Company issued and sold 12,650,000 shares of its common stock at a public offering price of $29.00 per share, including 1,650,000 shares sold upon the exercise of the underwriter's option to purchase additional shares. After underwriter discounts and commissions and other offering costs, net proceeds from the IPO were approximately $335.6 million. Offering cost of approximately $3.5 million were recognized as a component of general and administrative expense for the year ended December 31, 2019. In connection with the IPO, the Company's outstanding convertible preferred stock converted into shares of common stock (See Note 9) on July 2, 2020. Upon conversion of the convertible preferred stock, the Company reclassified the carrying value of the preferred stock to common stock and additional paid in capital. Upon closing of the IPO, the Company filed an amended and restated certificate of incorporation on July 7, 2020 with the Secretary of State of the State of Delaware to authorize the issuance of up to 200,000,000 shares of common stock, par value $0.00001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. As of September 30, 2020 and December 31, 2019, the Company was authorized to issue 200,000,000 and 52,000,000 shares of par value $0.00001 per share common stock, respectively. The voting, dividend and liquidation rights of the holders of the Company’s common stock is subject to and qualified by the rights, powers and preferences of the holders of the preferred stock. On February 18, 2020, the Company made a contribution of 500,000 newly issued shares of common stock to a related party, the Lemonade Foundation (see Note 14). Undesignated Preferred Stock As of September 30, 2020, the Company's certificate of incorporation, as amended and restated, authorized the Company to issue up to 10,000,000 shares of undesignated preferred stock, par value $0.00001 per share. As of September 30, 2020, there were no shares of undesignated preferred stock issued or outstanding.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-based Compensation	Stock-based Compensation Share option plans 2020 Incentive Compensation Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Incentive Compensation Plan (the “2020 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s IPO on July 2, 2020. The 2020 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2020 Plan is 5,503,678 shares, inclusive of available shares previously reserved for issuance under the 2015 incentive share option plan, as amended and restated on September 4, 2019 (the “2015 Plan”). In addition, the number of shares reserved for issuance under the 2020 Plan is subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. Annually, on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, the reserve will be increased by an amount equal to the lesser of (A) 5% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 3,650,000 shares may be issued upon the exercise of incentive stock options. As of September 30, 2020, there we re 5,262,053 shares of Common stock available for future grants. 2020 Employee Stock Purchase Plan On July 2, 2020, the Company's board of directors adopted and the Company's stockholders approved the 2020 Employee Stock Purchase Plan (the "2020 ESPP", which became effective immediately prior to the effectiveness of the registration statement for the Company's IPO on July 2, 2020. The total shares of common stock initially reserved for issuance under the 2020 ESPP is limited to 1,000,000 shares. In addition, the number of shares available for issuance under the 2020 ESPP will be annually increased on January 1 of each calendar year beginning in 2021 and ending in and including 2030, by an amount equal to the lesser of (A) 1,000,000 Shares, (B) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (C) such smaller number of shares as is determined by the board of directors. The board of directors or a committee of the board of directors will administer and will have authority to interpret the terms of the 2020 ESPP and determine eligibility of participants. 2015 Plan In July 2015, the Company adopted the 2015 Plan. The 2015 Plan has been amended and restated from time to time to increase the number of shares reserved for grant and to enable the grant of options to employees of the Company’s subsidiaries. Under the 2015 plan, options to purchase Common stock of the Company may be granted to employees, officers, directors and consultants of the Company. Each option granted can be exercised for one share of Common stock of the Company. Options granted to employees generally vest over a period of no more than four years. The options expire 10 years from the date of grant. Pursuant to the 2015 Plan, the Company had reserved 7,312,590 shares of Common stock for issuance. Effective immediately upon the approval of the 2020 plan, the remaining 1,753,678 shares available for future grant under the 2015 Plan have transferred to the 2020 Plan. As of September 30, 2020, there wer e no shares of Common stock available for future grant under the 2015 Plan. Subsequent to the approval of the 2020 Plan, no additional grants will be made under the 2015 Plan and any outstanding awards under the 2015 Plan will continue with their original terms. Options granted to employees and non-employees The fair value of each option granted for the nine months ended September 30, 2020 and 2019 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Nine Months Ended 2020 2019 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 0.8% 1.7% Volatility 40% 45% Expected dividend yield 0% 0% Expected volatility is based on companies at a comparable stage, as well as companies in the same or a similar industry. The expected term of options granted is based on the “Simplified” method, in accordance with ASC 718, “Compensation — Stock Compensation”. The risk-free interest rate is based on observed interest rates appropriate for the term of the Company’s employee stock options. The dividend yield assumption is based on the Company’s historical and expected future dividend payouts and may be subject to substantial change in the future. The following table summarizes activity of stock options ($ in millions, except for option and average amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 4,048,802 $ 13.27 8.8 $ 42.2 Granted 968,280 30.44 Exercised (92,157) 3.77 Cancelled (110,001) 20.87 Outstanding as of September 30, 2020 4,814,924 $ 16.73 8.4 $ 158.8 Options exercisable as of September 30, 2020 1,698,568 $ 8.72 7.5 $ 69.6 Options vested and expected to vest as of September 30, 2020 4,814,924 $ 16.73 8.4 $ 158.8 Total stock-based compensation expense resulting from stock options granted to employees and non-employees for the three and nine months ended September 30, 2020 were $2.7 million and $7.3 million, respectively and for the three and nine months ended September 30, 2019 were $1.5 million and $2.3 million, respectively. In December 2019, the board of directors approved the repricing of the stock options to purchase 1,708,300 shares of common stock held by 198 employees with exercise prices of $26.04 and $28.53 per share to the then current fair value of $23.69 per share. In connection with the repricing of these options, the Company recorded incremental expense of $0.1 million and $0.3 million for the three and nine months ended September 30, 2020. The incremental unrecognized expense on these repriced option grants at September 30, 2020 was $1.3 million, with a remaining weighted-average period vesting period of 1.1 years. The total unrecognized expense on options granted to employees and non-employees outstanding at September 30, 2020 was $32.3 million, with a remaining weighted-average vesting period of 1.4 years. Stock-based compensation expense Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows ($ in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Loss and loss adjustment expense, net $ 0.1 $ — $ 0.2 $ — Other insurance expense 0.1 0.2 0.5 0.4 Sales and marketing 0.8 0.3 2.1 0.5 Technology development 0.8 0.7 2.1 0.8 General and administrative 0.9 0.3 2.4 0.6 Total stock-based compensation expense $ 2.7 $ 1.5 $ 7.3 $ 2.3 In 2016 and 2017, the Company entered into stock purchase agreements with two executive employees where in lieu of cash payment for the stock, promissory notes secured by the underlying stock purchased, were issued totaling $1.5 million and bearing a weighted average interest of 1.9% per annum, payable to the Company. On June 8, 2020, the Company received $1.3 million in cash from the two executives in full settlement of the outstanding promissory notes, including principal and accrued and unpaid interest. Total stock-based compensation expense resulting from stock options granted to the executives for the three and nine months ended September 30, 2020 and 2019 was less than $0.1 million and $0.1 million, respectively. The unrecognized expense on options granted to these executives outstanding at September 30, 2020 was $0.1 million, with a remaining weighted average vesting period of 0.6 years.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective tax rates The consolidated effective tax rate for the nine months ended September 30, 2020 and 2019, was (1.1)% and (0.4)%, respectively. The change in effective tax rate over the two periods was predominantly reflective of the change in profit before tax of its wholly-owned subsidiaries in Israel and the Netherlands. The Company believes that as of September 30, 2020, it had no material uncertain tax positions. Interest and penalties related to unrecognized tax expenses (benefits) are recognized in income tax expense, when applicable. There were no material liabilities for interest and penalties accrued as of September 30, 2020.

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss per Share Net loss per share Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Numerator: Net loss attributable to common stockholders ($ in millions) $ (30.9) $ (31.1) $ (88.4) $ (75.8) Denominator: Weighted average common shares outstanding — basic and diluted 53,997,315 11,178,924 25,935,362 11,079,303 Net loss per share attributable to common stockholders — basic and diluted $ (0.57) $ (2.78) $ (3.41) $ (6.84) The Company’s potentially dilutive securities, which include stock options and preferred stock, have been excluded from the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of 2020 2019 Options to purchase common stock 4,814,924 3,925,395 Convertible preferred stock (as converted to common stock) — 31,557,107 4,814,924 35,482,502 In addition to the potentially dilutive securities noted above, in 2016 and 2017 the Company entered into stock purchase agreements with executive employees where in lieu of cash payment for the stock, promissory notes were issued (see Note 11). The Company determined the purchase of the stock to be non-substantive, and as such, the shares subject to the promissory notes would not be deemed outstanding until such time as the promissory notes have been repaid. Accordingly, the Company excluded these shares in the calculation of basic and diluted net loss per share for the three and nine months ended September 30, 2019. On June 8, 2020, all outstanding balances under the promissory notes were paid back to the Company and therefore, these shares were included in the calculation of basic and diluted net loss per share for the three and nine months ended September 30, 2020.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company uses the services of a travel agency owned by a relative of one of the Company’s key stockholders. The Company incurred travel related expenses in the amount of approximately $0 and $0.1 million during the three and nine months ended September 30, 2020 and less than $0.1 million and $0.2 million during the three and nine months ended September 30, 2019, respectively, in connection with these services. The Company has leased office space in the United States and The Netherlands from an affiliate. The rental expense recorded was less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2020 and 2019, respectively. There were no outstanding amounts due to or from related parties as of September 30, 2020 and December 31, 2019.

Commitment and Contingent Liabi

Commitment and Contingent Liabilities	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitment and Contingent Liabilities	Commitments and Contingent Liabilities Litigation The Company is occasionally a party to routine claims or litigation incidental to its business. The Company does not believe that it is a party to any pending legal proceeding that is likely to have a material adverse effect on its business, financial condition or results of operations. Lease commitments The Company and its subsidiaries lease their facilities under various operating lease agreements. The Company’s headquarters in New York is under a lease that expires in November 2022. The Company’s Israel based operations occupy offices with lease expiration dates that extend through January 2023. On March 18, 2019, the Company entered into a lease agreement to lease office space in Scottsdale, Arizona that expires in December 2024. Aggregate minimum rental commitments under non-cancelable leases at September 30, 2020 are as follows ($ in millions): 2020 (remaining three months) $ 0.9 2021 3.7 2022 3.1 2023 0.4 2024 0.4 $ 8.5 Expenses for lease of facilities for the three and nine months ended September 30, 2020 were approximately $0.9 million and $2.8 million, respectively and for the three and nine months ended September 30, 2019 were approximately $0.8 million and $2.0 million, respectively. Charges and guarantees The Company provided guarantees with respect to office leases in an aggregate amount of $0.6 million as of September 30, 2020 and $0.6 million as of December 31, 2019.

Geographical Breakdown of Gross

Geographical Breakdown of Gross Written Premium	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Geographical Breakdown of Gross Written Premium	Geographical Breakdown of Gross Written Premium The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril and inland marine lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP Texas $ 15.9 22.3 % $ 9.3 24.5 % $ 36.5 23.4 % $ 21.3 25.8 % California 15.6 21.9 % 9.3 24.5 % 34.9 22.4 % 20.6 24.9 % New York 8.6 12.1 % 5.0 13.2 % 18.8 12.1 % 11.5 13.9 % Georgia 3.8 5.3 % 2.0 5.3 % 8.7 5.6 % 4.4 5.3 % Illinois 3.4 4.8 % 1.9 5.0 % 7.6 4.9 % 3.9 4.7 % New Jersey 3.0 4.2 % 1.5 3.9 % 6.1 3.9 % 3.4 4.1 % Michigan 2.0 2.8 % 1.1 2.8 % 4.4 2.8 % 2.2 2.7 % Pennsylvania 2.0 2.8 % 1.0 2.6 % 3.8 2.4 % 2.0 2.4 % Ohio 1.8 2.5 % 0.9 2.4 % 4.0 2.6 % 2.2 2.7 % Arizona 1.5 2.1 % 0.8 2.1 % 3.4 2.2 % 1.7 2.1 % All other 13.6 19.2 % 5.2 13.7 % 27.8 17.7 % 9.5 11.4 % $ 71.2 100.0 % $ 38.0 100.0 % $ 156.0 100.0 % $ 82.7 100.0 %

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of presentation	The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All material intercompany transactions and balances have been eliminated upon consolidation. All foreign currency amounts in the condensed consolidated statement of operations and comprehensive loss have been translated using an average rate for the reporting period. The Company translates all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and other assets and liabilities using historical exchange rates. All figures expressed, except share amounts, are in U.S. dollars in millions.
Use of estimates	The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, the Company’s management evaluates estimates, including those related to contingent assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the reporting period. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the condensed consolidated financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Significant estimates reflected in the Company’s condensed consolidated financial statements include, but are not limited to, reserves for loss and loss adjustment expense, reinsurance recoverables on unpaid losses, and the fair values of investments.
Cash, cash equivalents and restricted cash	Cash consists primarily of cash on hand and bank deposits. Cash equivalents consist primarily of money market accounts with maturities of three months or less at the date of acquisition and are stated at cost, which approximates fair value. The Company’s restricted cash relates to security deposits for office leases in Israel. The carrying value of restricted cash approximates fair value.
Deferred offering costs	The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded as a reduction to the carrying value of stockholders' equity (deficit) as a reduction of additional paid-in capital generated as a result of such offering. In connection with the IPO, the Company incurred total offering costs of $32.4 million, of which $28.9 million was recorded as a reduction to gross proceeds, and $3.5 million was recognized as a component of general and administrative expense in 2019.
Recent accounting pronouncements	The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies, unless, as indicated below, management determines it is preferable to take advantage of early adoption provisions offered within the applicable guidance. In February 2016, the FASB issued Leases (Topic 842) (“ASU 2016-02”), whereby lessee will be required to recognize for all leases at the commencement date a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. A modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements must be applied. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. ASU 2016-02 is effective for the Company’s annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The adoption of the new standard is expected to result in the recognition of additional lease liabilities and right-of-use assets as of January 1, 2022. The Company is evaluating the potential impact of this pronouncement. In June 2016, the FASB issued Financial Instruments — Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, held-to-maturity debt securities, premium receivables, and reinsurance recoverable. The valuation
Reclassification	Certain accounts in the prior period financial statements were reclassified to conform with the current period presentation.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and December 31, 2019 ($ in millions): As of September 30, December 31, 2020 2019 Cash and cash equivalents $ 575.4 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 575.7 $ 270.3
Restricted cash	The following represents the Company’s cash, cash equivalents and restricted cash as of September 30, 2020 and December 31, 2019 ($ in millions): As of September 30, December 31, 2020 2019 Cash and cash equivalents $ 575.4 $ 270.0 Restricted cash 0.3 0.3 Total cash, cash equivalents and restricted cash $ 575.7 $ 270.3

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized cost and fair values	The following tables present cost or amortized cost and fair values of investments as of September 30, 2020 and December 31, 2019 ($ in millions): Cost or Amortized Cost Gross Fair Gains Losses September 30, 2020 U.S. Government obligations $ 6.5 $ 0.2 $ — $ 6.7 Total $ 6.5 $ 0.2 $ — $ 6.7 December 31, 2019 U.S. Government obligations $ 5.8 $ 0.1 $ — $ 5.9 Total $ 5.8 $ 0.1 $ — $ 5.9
Contractual maturities of bonds	The following table presents the cost or amortized cost and estimated fair value of bonds as of September 30, 2020 by contractual maturity ($ in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. As of September 30, 2020 Cost or Fair Value Due in one year or less $ 0.1 $ 0.1 Due after one year through five years 6.4 6.6 Due after five years through ten years — — Due after ten years — — Total $ 6.5 $ 6.7
Net investment income	An analysis of net investment income follows ($ in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Interest on cash and cash equivalents $ 0.1 $ 0.9 $ 0.9 $ 1.7 Bonds 0.1 0.1 0.1 0.1 Short-term investments — 0.1 0.3 0.3 Total net investment income $ 0.2 $ 1.1 $ 1.3 $ 2.1
Aging of gross unrealized losses	The following table presents the gross unrealized losses and related fair values for the Company’s available-for-sale bond securities, grouped by duration of time in a continuous unrealized loss position, as of December 31, 2019 ($ in millions): Less than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 U.S. Government obligations $ 0.2 $ — $ 2.2 $ — $ 2.4 $ — Total $ 0.2 $ — $ 2.2 $ — $ 2.4 $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair value hierarchy for financial assets and liabilities	The following tables present the Company’s fair value hierarchy for financial assets and liabilities measured as of September 30, 2020 and December 31, 2019 ($ in millions): September 30, 2020 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 6.7 $ — $ 6.7 Total $ — $ 6.7 $ — $ 6.7 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: U.S. Government obligations $ — $ 5.9 $ — $ 5.9 Total $ — $ 5.9 $ — $ 5.9

Unpaid Loss and Loss Adjustme_2

Unpaid Loss and Loss Adjustment Expense (Tables)	9 Months Ended
	Sep. 30, 2020
Insurance [Abstract]
Activity in the liability for unpaid loss and LAE	The following table presents the activity in the liability for unpaid loss and loss adjustment expense ("LAE") for the nine months ended September 30, 2020 and 2019 ($ in millions): Nine Months Ended 2020 2019 Unpaid loss and LAE at beginning of period $ 28.2 $ 13.1 Less: Reinsurance recoverable at beginning of period (1). 18.5 11.3 Net unpaid loss and LAE at beginning of period 9.7 1.8 Add: Incurred loss and LAE, net of reinsurance, related to: Current year 44.1 32.2 Prior years 1.3 (1.8) Total incurred 45.4 30.4 Deduct: Paid loss and LAE, net of reinsurance, related to: Current year 36.4 36.0 Prior years 11.0 (12.0) Total paid 47.4 24.0 Unpaid loss and LAE, net of reinsurance recoverable, at end of period 7.7 8.2 Reinsurance recoverable at end of period (1) 32.0 16.4 Unpaid loss and LAE, gross of reinsurance recoverable, at end of period $ 39.7 $ 24.6 (1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE

Other Liabilities and Accrued_2

Other Liabilities and Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
Other Liabilities Disclosure [Abstract]
Other liabilities and accrued expenses	Other liabilities and accrued expense as of September 30, 2020 and December 31, 2019 consist of the following ($ in millions): As of September 30, December 31, 2020 2019 Deferred ceded commission $ 20.9 $ — Ceded premium payable 17.9 3.9 Accrued advertising costs 6.3 7.9 Accrued professional fees 2.6 2.8 Premium taxes payable 2.3 2.6 Employee compensation payable 2.2 1.0 Indirect taxes payable 0.3 0.4 Income tax payable 0.2 0.5 Other payables 1.4 0.6 Total other liabilities and accrued expense $ 54.1 $ 19.7

Convertible Preferred Stock (Ta

Convertible Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2020
Temporary Equity Disclosure [Abstract]
Convertible preferred stock	As of December 31, 2019, preferred stock consisted of the following ($ in millions, except for share amounts): As of December 31, 2019 Preferred Preferred Carrying Liquidation Common Stock Series Seed Preferred stock 7,905,140 7,905,140 $ 12.9 $ 13.0 7,905,140 Series A Preferred stock 3,328,774 3,328,774 14.0 13.6 3,328,774 Series B Preferred stock 4,511,417 4,511,417 34.1 34.1 4,511,417 Series C Preferred stock 8,703,846 8,703,846 119.8 120.1 8,703,846 Series D Preferred stock 7,107,930 7,107,930 299.4 300.0 7,107,930 31,557,107 31,557,107 $ 480.2 $ 480.8 31,557,107

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Fair value assumptions	The fair value of each option granted for the nine months ended September 30, 2020 and 2019 is estimated on the date of grant using the Black-Scholes model based on the following assumptions: Nine Months Ended 2020 2019 Weighted average expected term (years) 6.1 6.1 Risk-free interest rate 0.8% 1.7% Volatility 40% 45% Expected dividend yield 0% 0%
Stock options activity	The following table summarizes activity of stock options ($ in millions, except for option and average amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2019 4,048,802 $ 13.27 8.8 $ 42.2 Granted 968,280 30.44 Exercised (92,157) 3.77 Cancelled (110,001) 20.87 Outstanding as of September 30, 2020 4,814,924 $ 16.73 8.4 $ 158.8 Options exercisable as of September 30, 2020 1,698,568 $ 8.72 7.5 $ 69.6 Options vested and expected to vest as of September 30, 2020 4,814,924 $ 16.73 8.4 $ 158.8
Stock-based compensation expense	Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows ($ in millions): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Loss and loss adjustment expense, net $ 0.1 $ — $ 0.2 $ — Other insurance expense 0.1 0.2 0.5 0.4 Sales and marketing 0.8 0.3 2.1 0.5 Technology development 0.8 0.7 2.1 0.8 General and administrative 0.9 0.3 2.4 0.6 Total stock-based compensation expense $ 2.7 $ 1.5 $ 7.3 $ 2.3

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Basic and diluted net loss per share	Basic and diluted net loss per share attributable to common stockholders was calculated as follows: Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Numerator: Net loss attributable to common stockholders ($ in millions) $ (30.9) $ (31.1) $ (88.4) $ (75.8) Denominator: Weighted average common shares outstanding — basic and diluted 53,997,315 11,178,924 25,935,362 11,079,303 Net loss per share attributable to common stockholders — basic and diluted $ (0.57) $ (2.78) $ (3.41) $ (6.84)
Antidilutive potential common shares	The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: As of 2020 2019 Options to purchase common stock 4,814,924 3,925,395 Convertible preferred stock (as converted to common stock) — 31,557,107 4,814,924 35,482,502

Commitment and Contingent Lia_2

Commitment and Contingent Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Aggregate minimum rental commitments under non-cancelable leases	Aggregate minimum rental commitments under non-cancelable leases at September 30, 2020 are as follows ($ in millions): 2020 (remaining three months) $ 0.9 2021 3.7 2022 3.1 2023 0.4 2024 0.4 $ 8.5

Geographical Breakdown of Gro_2

Geographical Breakdown of Gross Written Premium (Tables)	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Gross written premium by state	The Company has a single reportable segment and offers insurance coverage under the homeowners multi-peril and inland marine lines of business. Gross written premium by jurisdiction are as follows ($ in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Jurisdiction Amount % of GWP Amount % of GWP Amount % of GWP Amount % of GWP Texas $ 15.9 22.3 % $ 9.3 24.5 % $ 36.5 23.4 % $ 21.3 25.8 % California 15.6 21.9 % 9.3 24.5 % 34.9 22.4 % 20.6 24.9 % New York 8.6 12.1 % 5.0 13.2 % 18.8 12.1 % 11.5 13.9 % Georgia 3.8 5.3 % 2.0 5.3 % 8.7 5.6 % 4.4 5.3 % Illinois 3.4 4.8 % 1.9 5.0 % 7.6 4.9 % 3.9 4.7 % New Jersey 3.0 4.2 % 1.5 3.9 % 6.1 3.9 % 3.4 4.1 % Michigan 2.0 2.8 % 1.1 2.8 % 4.4 2.8 % 2.2 2.7 % Pennsylvania 2.0 2.8 % 1.0 2.6 % 3.8 2.4 % 2.0 2.4 % Ohio 1.8 2.5 % 0.9 2.4 % 4.0 2.6 % 2.2 2.7 % Arizona 1.5 2.1 % 0.8 2.1 % 3.4 2.2 % 1.7 2.1 % All other 13.6 19.2 % 5.2 13.7 % 27.8 17.7 % 9.5 11.4 % $ 71.2 100.0 % $ 38.0 100.0 % $ 156.0 100.0 % $ 82.7 100.0 %

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Jul. 02, 2020	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Jul. 02, 2020	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents		$ 575.4				$ 270
Restricted cash		0.3				0.3
Total cash, cash equivalents and restricted cash		575.7	$ 303.2			270.3		$ 102.4
Offering costs incurred							$ 32.4
Offering costs, reduction to gross proceeds	$ 28.9	$ 28.9	$ 0	$ 0.6	$ 0
Offering costs, expensed						$ 3.5

Investments - Amortized Cost an

Investments - Amortized Cost and Fair Values (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 6.5	$ 5.8
Gross Unrealized Gains	0.2	0.1
Gross Unrealized Losses	0	0
Fair Value	6.7	5.9
U.S. Government obligations
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	6.5	5.8
Gross Unrealized Gains	0.2	0.1
Gross Unrealized Losses	0	0
Fair Value	$ 6.7	$ 5.9

Investments - Contractual Matur

Investments - Contractual Maturities of Bonds (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Cost or Amortized Cost
Due in one year or less	$ 0.1
Due after one year through five years	6.4
Due after five years through ten years	0
Due after ten years	0
Cost or Amortized Cost	6.5	$ 5.8
Fair Value
Due in one year or less	0.1
Due after one year through five years	6.6
Due after five years through ten years	0
Due after ten years	0
Fair Value	$ 6.7	$ 5.9

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Investment Income [Line Items]
Net investment income	$ 0.2	$ 1.1	$ 1.3	$ 2.1
Interest on cash and cash equivalents
Net Investment Income [Line Items]
Net investment income	0.1	0.9	0.9	1.7
Bonds
Net Investment Income [Line Items]
Net investment income	0.1	0.1	0.1	0.1
Short-term investments
Net Investment Income [Line Items]
Net investment income	$ 0	$ 0.1	$ 0.3	$ 0.3

Investments - Aging Of Gross Un

Investments - Aging Of Gross Unrealized Losses (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Fair Value
Less than 12 Months		$ 200,000
12 Months or More		2,200,000
Fair Value		2,400,000
Gross Unrealized Losses
Less than 12 Months		0
12 Months or More		0
Gross Unrealized Losses		0
U.S. Government obligations
Fair Value
Less than 12 Months		200,000
12 Months or More		2,200,000
Fair Value		2,400,000
Gross Unrealized Losses
Less than 12 Months		0
12 Months or More	$ 0	0
Gross Unrealized Losses		$ 0

Investments - Additional Inform

Investments - Additional Information (Details) - security	Sep. 30, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Number of debt securities held	7	9
Number of debt securities held, unrealized loss position for 12 months or more	0	4

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	$ 6.7	$ 5.9
Total	6.7	5.9
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	6.7	5.9
Total	6.7	5.9
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
U.S. Government obligations	0	0
Total	$ 0	$ 0

Unpaid Loss and Loss Adjustme_3

Unpaid Loss and Loss Adjustment Expense (Details) - USD ($) $ in Millions	Jul. 01, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Unpaid loss and LAE at beginning of period				$ 28.2	$ 13.1
Less: Reinsurance recoverable at beginning of period				18.5	11.3
Net unpaid loss and LAE at beginning of period				9.7	1.8
Add: Incurred loss and LAE, net of reinsurance, related to:
Current year				44.1	32.2
Prior years				1.3	(1.8)
Total incurred		$ 6.7	$ 12.6	45.4	30.4
Deduct: Paid loss and LAE, net of reinsurance, related to:
Current year				36.4	36
Prior years				11	(12)
Total paid				47.4	24
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period		7.7	8.2	7.7	8.2
Reinsurance recoverable at end of period		32	16.4	32	16.4
Unpaid loss and LAE, gross of reinsurance recoverable, at end of period		$ 39.7	$ 24.6	39.7	24.6
Effects of Reinsurance [Line Items]
(Unfavorable) favorable development on net loss and LAE reserve				$ (1.3)	$ 1.8
Proportional Reinsurance Contracts
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance	75.00%
Ceded commission percentage	25.00%
Claims funding percentage	75.00%
Proportional Reinsurance Contracts, Tranche One
Effects of Reinsurance [Line Items]
Reinsurance contract, term	3 years
Proportional Reinsurance Contracts, Tranche Two
Effects of Reinsurance [Line Items]
Reinsurance contract, term	1 year
Non-Proportional Reinsurance Contracts
Effects of Reinsurance [Line Items]
Percent of contracts subject to participation through reinsurance	25.00%
Reinsurance contract, term	1 year

Other Liabilities and Accrued_3

Other Liabilities and Accrued Expenses (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Deferred ceded commission	$ 20.9	$ 0
Ceded premium payable	17.9	3.9
Accrued advertising costs	6.3	7.9
Accrued professional fees	2.6	2.8
Premium taxes payable	2.3	2.6
Employee compensation payable	2.2	1
Indirect taxes payable	0.3	0.4
Income tax payable	0.2	0.5
Other payables	1.4	0.6
Total other liabilities and accrued expense	$ 54.1	$ 19.7

Convertible Preferred Stock (De

Convertible Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Temporary Equity [Line Items]
Conversion of Convertible Preferred Stock to common stock upon closing of initial public offering (shares)	31,557,107	31,557,107
Convertible preferred stock, authorized (shares)	0	0			31,557,107
Convertible preferred stock, par value (usd per share)	$ 0.00001	$ 0.00001			$ 0.00001
Convertible preferred stock, outstanding (shares)	0	0	31,557,107	31,557,107	31,557,107	31,557,107	28,595,471,000,000	24,449,177	24,445,555
Convertible preferred stock, issued (shares)	0	0			31,557,107
Convertible preferred stock, carrying value	$ 0	$ 0	$ 480.2	$ 480.2	$ 480.2	$ 480.2	$ 355.2	$ 180.8	$ 180.8
Convertible preferred stock, liquidation preference	$ 0	$ 0			$ 480.8
Convertible preferred stock, common stock issuable upon conversion (shares)					31,557,107
Series Seed Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)					7,905,140
Convertible preferred stock, outstanding (shares)					7,905,140
Convertible preferred stock, issued (shares)					7,905,140
Convertible preferred stock, carrying value					$ 12.9
Convertible preferred stock, liquidation preference					$ 13
Convertible preferred stock, common stock issuable upon conversion (shares)					7,905,140
Series A Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)					3,328,774
Convertible preferred stock, outstanding (shares)					3,328,774
Convertible preferred stock, issued (shares)					3,328,774
Convertible preferred stock, carrying value					$ 14
Convertible preferred stock, liquidation preference					$ 13.6
Convertible preferred stock, common stock issuable upon conversion (shares)					3,328,774
Series B Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)					4,511,417
Convertible preferred stock, outstanding (shares)					4,511,417
Convertible preferred stock, issued (shares)					4,511,417
Convertible preferred stock, carrying value					$ 34.1
Convertible preferred stock, liquidation preference					$ 34.1
Convertible preferred stock, common stock issuable upon conversion (shares)					4,511,417
Series C Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)					8,703,846
Convertible preferred stock, outstanding (shares)					8,703,846
Convertible preferred stock, issued (shares)					8,703,846
Convertible preferred stock, carrying value					$ 119.8
Convertible preferred stock, liquidation preference					$ 120.1
Convertible preferred stock, common stock issuable upon conversion (shares)					8,703,846
Series D Preferred stock
Temporary Equity [Line Items]
Convertible preferred stock, authorized (shares)					7,107,930
Convertible preferred stock, outstanding (shares)					7,107,930
Convertible preferred stock, issued (shares)					7,107,930
Convertible preferred stock, carrying value					$ 299.4
Convertible preferred stock, liquidation preference					$ 300
Convertible preferred stock, common stock issuable upon conversion (shares)					7,107,930

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 02, 2020	Feb. 18, 2020	Sep. 30, 2020	Dec. 31, 2019	Jul. 07, 2020
Sale of Stock [Line Items]
Offering costs, expensed				$ 3.5
Common stock, authorized (shares)			200,000,000	52,000,000	200,000,000
Common stock, par value (usd per share)			$ 0.00001	$ 0.00001	$ 0.00001
Preferred stock, authorized (shares)			10,000,000		10,000,000
Preferred stock, par value (usd per share)					$ 0.00001
IPO
Sale of Stock [Line Items]
Common stock sold (shares)	12,650,000
Common stock sold, price (usd per share)	$ 29
Net proceeds from sale	$ 335.6
Offering costs, expensed				$ 3.5
Underwriter's option
Sale of Stock [Line Items]
Common stock sold (shares)	1,650,000
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Contribution to the Lemonade Foundation (shares)		500,000	500,000

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	Jul. 02, 2020shares	Jun. 08, 2020USD ($)employee	Dec. 31, 2019employee$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)	Dec. 31, 2017USD ($)employee	Jul. 31, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 2.7	$ 1.5	$ 7.3	$ 2.3
Proceeds from release of shares upon repayment						$ 1.3	0
Settlement of subscriptions receivable, number of executive employees | employee		2
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares) | shares	5,503,678
Common stock reserved for issuance, annual increase, percentage of outstanding shares	5.00%
Maximum shares that may be issued upon exercise of incentive stock options (shares) | shares	3,650,000
Common stock available for grant (shares) | shares				5,262,053		5,262,053
Shares available for future grant, transferred from previous plan (shares) | shares	1,753,678
2020 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares) | shares	1,000,000
Common stock reserved for issuance, annual increase, percentage of outstanding shares	1.00%
Number of shares available for issuance, annual increase (shares) | shares	1,000,000
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance (shares) | shares									7,312,590
Common stock available for grant (shares) | shares				0		0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 2.7	1.5	$ 7.3	2.3
Repricing of stock options (shares) | shares			1,708,300
Repricing of stock options, number of employees impacted | employee			198
Repricing of stock options, exercise price, lower limit (usd per share) | $ / shares			$ 26.04
Repricing of stock options, exercise price, upper limit (usd per share) | $ / shares			28.53
Repricing of stock options, fair value (usd per share) | $ / shares			$ 23.69
Repricing of stock options, incremental expense				0.1		0.3
Repricing of stock options, unrecognized incremental expense				1.3		$ 1.3
Repricing of stock options, unrecognized incremental expense, period for recognition						1 year 1 month 6 days
Unrecognized expense				32.3		$ 32.3
Unrecognized expense, period for recognition						1 year 4 months 24 days
Stock options | 2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Expiration period						10 years
Executive | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				0.1	$ 0.1	$ 0.1	$ 0.1
Unrecognized expense				$ 0.1		$ 0.1
Unrecognized expense, period for recognition						7 months 6 days
Subscriptions receivable, number of executive employees | employee								2
Subscriptions receivable								$ 1.5
Subscriptions receivable, weighted average interest rate								1.90%
Proceeds from release of shares upon repayment		$ 1.3

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions (Details) - Stock options	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average expected term	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	0.80%	1.70%
Volatility	40.00%	45.00%
Expected dividend yield	0.00%	0.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options Activity (Details) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Number of Options
Outstanding (shares) | shares	4,048,802
Granted (shares) | shares	968,280
Exercised (shares) | shares	(92,157)
Cancelled (shares) | shares	(110,001)
Outstanding (shares) | shares	4,814,924	4,048,802
Exercisable (shares) | shares	1,698,568
Vested and expected to vest, (shares) | shares	4,814,924
Weighted- Average Exercise Price
Outstanding (usd per share) | $ / shares	$ 13.27
Granted (usd per share) | $ / shares	30.44
Exercised (usd per share) | $ / shares	3.77
Cancelled (usd per share) | $ / shares	20.87
Outstanding (usd per share) | $ / shares	16.73	$ 13.27
Exercisable, weighted-average exercise price (usd per share) | $ / shares	8.72
Vested and expected to vest, weighted-average exercise price (usd per share) | $ / shares	$ 16.73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted-average remaining contractual, term	8 years 4 months 24 days	8 years 9 months 18 days
Exercisable, weighted-average remaining contractual, term	7 years 6 months
Vested and expected to vest, weighted-average remaining contractual, term	8 years 4 months 24 days
Outstanding, aggregate intrinsic value, outstanding | $	$ 158.8	$ 42.2
Exercisable, aggregate intrinsic value | $	69.6
Vested and expected to vest, aggregate intrinsic value | $	$ 158.8

Stock-based Compensation - Expe

Stock-based Compensation - Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 2.7	$ 1.5	$ 7.3	$ 2.3
Loss and loss adjustment expense, net
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.1	0	0.2	0
Other insurance expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.1	0.2	0.5	0.4
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.8	0.3	2.1	0.5
Technology development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	0.8	0.7	2.1	0.8
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 0.9	$ 0.3	$ 2.4	$ 0.6

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	(1.10%)	(0.40%)

Net Loss Per Share - Reconcilia

Net Loss Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net loss attributable to common stockholders	$ (30.9)	$ (31.1)	$ (88.4)	$ (75.8)
Denominator:
Weighted average common shares outstanding—basic and diluted (shares)	53,997,315	11,178,924	25,935,362	11,079,303
Net loss per share attributable to common stockholders—basic and diluted (usd per share)	$ (0.57)	$ (2.78)	$ (3.41)	$ (6.84)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Potential Common Shares (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	4,814,924	35,482,502
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	4,814,924	3,925,395
Convertible preferred stock (as converted to common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive potential common shares	0	31,557,107

Related Party Transactions (Det

Related Party Transactions (Details)	Feb. 18, 2020shares	Sep. 30, 2020USD ($)director	Mar. 31, 2020shares	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)director$ / sharesshares	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Related Party Transaction [Line Items]
Due to (from) related parties		$ 0			$ 0		$ 0
Common share contribution to the Lemonade Foundation					12,200,000	$ 0
Common Stock
Related Party Transaction [Line Items]
Contribution to the Lemonade Foundation (shares) | shares			500,000
Key stockholder | Travel related expenses
Related Party Transaction [Line Items]
Expenses with related parties		$ 0		$ 100,000	$ 100,000	$ 200,000
Affiliated entity | The Lemonade Foundation
Related Party Transaction [Line Items]
Number of shared directors | director		2			2
Contribution to the Lemonade Foundation (shares) | shares	500,000				500,000
Contribution of common stock to related party, fair value (usd per share) | $ / shares					$ 24.36
Common share contribution to the Lemonade Foundation					$ 12,200,000
Due from related party		$ 100,000			100,000
Affiliated entity | Rental expense
Related Party Transaction [Line Items]
Expenses with related parties		$ 100,000			$ 100,000

Commitment and Contingent Lia_3

Commitment and Contingent Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
2020 (remaining three months)	$ 0.9		$ 0.9
2021	3.7		3.7
2022	3.1		3.1
2023	0.4		0.4
2024	0.4		0.4
Aggregate minimum rental commitments	8.5		8.5
Rental expense	0.9	$ 0.8	2.8	$ 2
Office leases, payment guarantees
Loss Contingencies [Line Items]
Guarantees	$ 0.6		$ 0.6		$ 0.6

Geographical Breakdown of Gro_3

Geographical Breakdown of Gross Written Premium (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segment	Sep. 30, 2019USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			1
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 71.2	$ 38	$ 156	$ 82.7
Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	100.00%	100.00%	100.00%	100.00%
Texas
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 15.9	$ 9.3	$ 36.5	$ 21.3
Texas | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	22.30%	24.50%	23.40%	25.80%
California
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 15.6	$ 9.3	$ 34.9	$ 20.6
California | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	21.90%	24.50%	22.40%	24.90%
New York
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 8.6	$ 5	$ 18.8	$ 11.5
New York | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	12.10%	13.20%	12.10%	13.90%
Georgia
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 3.8	$ 2	$ 8.7	$ 4.4
Georgia | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	5.30%	5.30%	5.60%	5.30%
Illinois
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 3.4	$ 1.9	$ 7.6	$ 3.9
Illinois | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.80%	5.00%	4.90%	4.70%
New Jersey
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 3	$ 1.5	$ 6.1	$ 3.4
New Jersey | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	4.20%	3.90%	3.90%	4.10%
Michigan
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2	$ 1.1	$ 4.4	$ 2.2
Michigan | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.80%	2.80%	2.80%	2.70%
Pennsylvania
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 2	$ 1	$ 3.8	$ 2
Pennsylvania | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.80%	2.60%	2.40%	2.40%
Ohio
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.8	$ 0.9	$ 4	$ 2.2
Ohio | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.50%	2.40%	2.60%	2.70%
Arizona
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 1.5	$ 0.8	$ 3.4	$ 1.7
Arizona | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	2.10%	2.10%	2.20%	2.10%
All other
Revenues from External Customers and Long-Lived Assets [Line Items]
Amount	$ 13.6	$ 5.2	$ 27.8	$ 9.5
All other | Gross written premium | Geographic Concentration Risk
Revenues from External Customers and Long-Lived Assets [Line Items]
% of GWP	19.20%	13.70%	17.70%	11.40%