(Image source: CoverStartups webpage.)
CoverWallet, a digital insurance platform for businesses acquired by Aon in Jan. 2020, has announced a new digital insurance product for venture capital-backed startups. With this new management liability package, VC-backed startups can instantly buy and manage Directors & Officers insurance (D&O), Employment Practices liability (EPL), and Fiduciary coverage online, a CoverWallet statement says.
The management liability package is designed for companies from Seed through Series C and adds to the insurance policies already available through CoverStartups, a dedicated platform for high-growth companies. Based on a proprietary algorithm that assigns a Rating Factor using a VC’s past performance, the product categorizes investors into tiers based on their track records and due diligence processes. For startups, the result is a shorter application process and more precise coverage to protect against their risks, according to the CoverWallet statement.
Faster, Simpler, More Convenient Experience
“After launching CoverStartups two years ago, we saw the need for a better insurance experience and product for high-growth startups when it came to management liability, and especially D&O coverage,” comments Inaki Berenguer, CEO and co-founder, CoverWallet. “By continuing to take a customer-centric approach and harnessing new datasets, CoverWallet is able to deliver startups a faster, simpler and more convenient experience for buying and managing insurance.”
The management liability offering, developed in collaboration with New York based agency Boost, is fully admitted. Management liability builds on CoverStartups’ existing insurance offerings that include General Liability, Worker’s Compensation, Errors & Omissions, Cyber Liability, Commercial Property and Professional Liability, enabling startups to buy and manage their insurance all in one place.
CoverWallet reports that he management liability package also includes:
- Access to a seamless online platform to manage insurance efficiently
- The ability to pay in monthly installments or in full
- A dedicated team that specializes in insurance for growth companies to answer any questions
- Broad Subsidiary language, which allows for coverage to apply to subsidiary businesses
- Coverage for Employee Stock Ownership Plans (ESOPs), which are key to founders and employees