Counterpart Inc., a Walnut, Calif.-based insurtech using technology and data to transform the management liability insurance market, has raised $10 million in funding led by Valor Equity Partners.
The insurtech field is wide open for startups like Counterpart and larger online insurance rival Next Insurance, which have made forays into the personal insurance market in recent years. To date, the Silicon Valley-based Next Insurance, which also provides small business liability insurance, has raised a total of $631 million.
"The insurance industry has an opportunity and obligation to use all available information to help small businesses navigate today's newfound risks," said Counterpart CEO Tanner Hackett in making the announcement.
Chicago-based Valor Equity was an early backer of Elon Musk's Tesla and SpaceX companies; Addepar, a wealth management platform that specializes in data aggregation, analytics and performance reporting; and, more recently, the "instant needs" delivery business run by GoPuff, which raised $1.15 billion on Tuesday in a new round of funding.
Other Counterpart investors in the $10 million round led by Valor Equity include Felicis Ventures and Susa Ventures.
Counterpart is targeting management liability insurance to mostly small businesses and brokers. The insurance covers exposures faced by directors, officers, managers, and business entities that arise from missteps caused by corporate governance, finance, benefits and management activities.
Large publicly traded firms generally purchase stand-alone policies as part of what Counterpart estimates is a $10 billion market – including small businesses and brokers.
Hackett could not be reached for comment on spending plans following the announcement.
Counterpart's product squeezes efficiencies out of the buying process. Its product manages liability insurance on a software platform that leverages technology at every touchpoint, including application submission, coverage selection, claims management and loss prevention.
Separately, Counterpart announced Tuesday a partnership with Glen Allen, Va.-based Markel Corp. to offer its management liability insurance products.
Markel is a diversified holding company for insurance and investment operations.
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