For small business owners, avoiding liability risks may feel like walking a tightrope where one slip could cost a hefty price. Bearing this in mind, LA-based Counterpart developed a solution to help businesses keep their balance and find the coverage they need. The company announced this week it raised $30 million in growth funding round for its management liability insurance solution.
Counterpart’s Series B was led by Vy Capital and brings the company’s total funding to $40 million. The company operates a liability rating system that helps measure small business risk exposures more efficiently. Other participants in Counterpart’s latest round include Valor Equity Partners and Felicis Ventures.
Amid heightened costs, confusing terms and underwriting snafus over the past three years, only a tiny fraction of small businesses — 3 percent — buy management liability coverage, even though a quarter of them have had to deal with lawsuits, Counterpart found.
“Small businesses are struggling and traditional commercial insurance carriers have been slow to respond to their needs,” Tanner Hackett, Counterpart’s CEO and founder, said in a statement. “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.”
Working to help businesses navigate these new norms, Counterpart’s platform aims to identify and mitigate potential claims using a suite of services for brokers and businesses, including risk assessment, access to HR experts as well as tools for harassment and discrimination training.
Its new funding will mainly go toward helping Counterpart grow its footprint within the management liability insurance space. In the coming months, the company wants to expand its product suite with solutions for crime and excess insurance. In addition to this, Counterpart also plans to introduce a new API platform to digitize the application process for broker clients, enabling brokers to grow their clientele and their clients to have a personalized experience.
The company is also investing part of this round in growing its workforce. Currently, Counterpart lists a handful of available roles on its team spanning insurance, product, data and business operations on its careers page.
