Ohio-based insurtech company Coterie raised $8.5 million Series A funding as it plans to specialize in the commercial insurance market.
The new funding round was led by venture companies RPM Ventures, Allos Ventures, and others. Coterie is also bringing the insurance industry to new heights by modernizing the products and expanding the benefits for policyholders.
“We’re incredibly fortunate to partner with such great investors to push the commercial insurance space forward. Their experience in the insurance, freelance, and B2B2C space is going to be highly beneficial as we expand,” said CEO and Founder David McFarland.
Prior to the $8.5 million funding, Coterie was able to raise $3.5 million, bringing it total venture funding $11.65 million. The company said to use the funding to bring new financial products, providing new ways to protect businesses. Through technology, the insurance company plans to introduce new products and deploy industry-changing ideas.
Other investors include Western & Southern, Intercept Ventures, Frontier Venture Capital, and Sure Ventures.
Coterie operates in the insurtech space, selling consumer insurance that links to third-party insurance products. Its competitor is Briza, another company offering APIs linking to small businesses insurance products.
Coterie said to have the total underwriting control over the policies, but they won’t ship it to different carriers. The company will only bind the policy and create a broad appetite to benefit businesses.
To process the insurance products, Coterie will be partnering with insurance partners to cater to the capital requirements. What makes Coterie unique is the ability to ensure freelancers for even a small increment of time. This model is not yet modernized, hence, the company capitalizing on it.
What Coterie will offer is general professional liability insurance along with business owners. It also eyes data types and power models to enhance business payment flow.
Coterie only started selling products last September 2019.