Counterpart Raises $30M To Expand Small Business Liability Insurance Platform
Prior investors also participated in the round, including Valor Equity Partners, an early backer of Tesla, SpaceX, Addepar and GoPuff, and Felicis Ventures, which has funded Plaid and Credit Karma, bringing Counterpart’s total capital raised to $40 million.
The new growth capital comes on the heels of an increasingly challenging operating environment for small businesses, where one in four has faced a management liability lawsuit in the last three years at an average cost of more than $100,000, according to Chubb. However, only 3% of small businesses purchase management liability coverage due to underwriting inefficiencies, confusing terms and coverage, and increased costs.
“Small businesses are struggling and traditional commercial insurance carriers have been slow to respond to their needs,” said Tanner Hackett, Founder and CEO of Counterpart. “On top of a pandemic, inflation, labor shortages and supply constraints, in 2022 companies now also face lawsuits related to their COVID vaccination and return-to-work policies. We're committed to introducing more insurance products and tools to help small businesses navigate the new norms of operating in this dynamic business environment.”
Counterpart has built the insurance industry’s most advanced management liability rating system to measure small business risk exposures more efficiently. The company proactively identifies and mitigates potential claims through its suite of broker and business services that include Risk Assessment, HR Expert On-Call, and Harassment & Discrimination Training tools, among others.
“Counterpart has unlocked something truly novel in a market that is in need of innovation. They’re using more data in unique ways to underwrite and mitigate the evolving exposures of small businesses. We're thrilled to support their mission to foster better workplaces through insurance,” said Jon Shulkin, Co-President and Partner, Valor Equity Partners.
Counterpart will use the growth capital to expand its footprint in the $20 billion private company management liability insurance market, scale its team and launch new products–including Crime and Excess insurance in the coming months. Counterpart’s extensive network of appointed brokers already offer its three existing management liability products: Directors and Officers, Employment Practices, and Fiduciary.
The company is also investing in its broker distribution partnerships to make management liability insurance more accessible to small businesses with the introduction of a new API platform. The easy-to-integrate API enables brokers to grow their clientele by digitizing the application process, expediting insurance purchase flow, and creating customized user experiences. Several national brokerages are already in the process of building their own digital management liability offerings on top of Counterpart's APIs, with many others queued to join throughout 2022.
To learn more, visit: API page.
Counterpart is the management liability insurance platform for the 21st century workplace. The company has built the most advanced management liability rating system in the industry to measure small business risk exposures. Counterpart uses these insights to offer insurance products, broker tools and HR services that help small businesses be the best version of themselves. For more information, visit yourcounterpart.com
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