If you take a look at equation 12 in the following link, they use TMSCl to protect a carboxylic acid and an amine for reaction with an acyl chloride. Seems that the TMS protects the COOH group to prevent some side reactions such as mixed anhydride formation which could then react with a nucleophile (such as amine or thiol) which would essentially couple your starting materials together. Because the TMS protected COOH is so labile, after the reaction, they can work it up in water to remove the TMS group. In your case, they are protecting both the thiol and COOH, but the general strategy is the same. Hope this helps.
DOI: 10.1002/047084289X.rc156.pub2