District Cover, a small business insurance broker, has successfully raised over $7m in a funding round that featured participation from Andreessen Horowitz.
The investment was led by Mosaic General Partnership, with additional participation from Amwins Ventures, and others, according to the Coverager.
The funding will support the official launch of District Cover’s “District Covered” commercial package policy.
This new, proprietary, non-admitted product is issued by Vantage Risk Specialty Insurance Company and aims to bridge the gap between restrictive excess and surplus lines products and costly admitted business-owners policies.
With the new capital, the firm also intends to enhance its technology and data-led underwriting capabilities. The company’s approach involves a detailed, block-by-block assessment of city risks, ensuring each policy is precisely tailored to the unique needs of the insured.
District Cover specialises in providing tailored insurance solutions for city-based small businesses. The company is committed to addressing the inefficiencies and high costs often faced by these businesses when seeking appropriate coverage.
Patrick Girouard, Chief Executive Officer at District Cover, commented, “Year after year, we’ve seen small businesses and the brokers that serve them struggle to find stable, competitive, and tailored insurance for city-based operations. This often leads to inefficiency and businesses overpaying for the wrong coverage. We exist to change that. Insurance should be life-changing and allow a business to open a new location, hire more employees, and survive a loss. We’re not taking a broad-stroke approach to underwriting, giving all neighborhoods the same coverage or score. In doing that, businesses are often left behind. In pairing technology, data-led underwriting, and human insights, we’re looking at city risks on a block-by-block basis to deeply understand characteristics and create a tailored policy that meets the insured’s needs.”
Richard Smith, general partner & co-founder at Mosaic General Partnership, remarked, “One of the reasons we founded Mosaic was to focus on how leveraging technology and community can generate both financial return and social impact. District Cover fits this thesis perfectly. Traditional insurance offerings under-serve many city-based neighborhoods. District Cover’s data-driven, tech-enabled approach allows it to bring sustainable access to insurance capacity to those in need. We’re excited to tackle this long-standing challenge with District Cover and its industry partners.”
Alex Blanco, chief executive of insurance at Vantage Risk, also expressed enthusiasm about the partnership, “We’re excited to partner with District Cover as a capacity provider and investor. Our mutual approach to risk is well aligned, using tech-enabled efficiency and robust analytics to see risk differently. District Cover extends our specialty insurance strategy to the small commercial market and our relationship will help drive the industry toward improving capacity for city-based businesses.”
To date, District Cover has raised $7m in funding, further solidifying its position in the small business insurance market.
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