Business insurance startup CoverWallet has raised $7.8m in a Series A round led by Union Square Ventures.
Index Ventures as well as existing backers Highland Capital Partners, Two Sigma Ventures and Founder Collective also contributed to the investment.
The New York-based company’s platform aims to help small businesses manage their commercial insurance policies by providing a better customer experience that connects users to its partnered insurers.
It includes policies for general liability, commercial property, workers compensation, directors and officers, professional liability, errors and omissions and cyber liability coverage.
Coverwallet COO Rashmi Melgiri said, “The $100bn US small business insurance market is on the verge of a big paradigm shift.
“Business owners expect to deal with insurance online, in the same way they use consumer friendly online technologies to deal with banking, payroll, accounting or sales.”
Union Square Ventures’ partner John Buttrick will join the company’s board of directors as a result of the deal.
He previously led investments in fintech startups such as ending Club, SigFig, RealtyShares, and C2FO.
The round brings CoverWallet’s total funding to $9.8m to date with it previously raising $2m Series A round in March of this year.
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