- Coverwatch raised $4.5 mn in pre-seed funding to expand its AI-native commercial insurance platform, with CoFound and Restive leading the round.
- The company targets brokerage incentives by charging a flat fee, using AI to review policies, close coverage gaps and request bids from more than 50 carriers.
- Coverwatch says it cuts clients’ insurance costs by 20% to 40% on average and plans to expand licensing across all 48 continental US states by Q3 2026.
Coverwatch, an AI-native commercial insurance platform built to assess business risk, identify coverage gaps and reduce premiums, raised $4.5 mn in pre-seed funding led CoFound and Restive. KFund, Liquid2 Ventures and other investors also joined.
Coverwatch said the funding will support product development and team growth as the company expands its commercial insurance system.
The company is targeting a brokerage market with a pay structure it sees as flawed. Traditional brokers earn commissions tied to premiums, so compensation rises when clients pay more for insurance.
According to Beinsure, this structure creates a mismatch between broker revenue and client savings. In 2025, US companies spent more than $400 bn on commercial insurance premiums. Around 10%, or more than $40 bn, went to broker commissions.
AI has changed the economics of policy review. Coverwatch uses software to analyze policies, benchmark pricing, manage service work and tailor insurance to a company’s live risk profile instead of a standard template.
It’s a broker model, yes, but one rebuilt around automation, human insurance expertise and different incentives.
Jordan Wan, founder and general partner at CoFound, said businesses now manage risks that move faster than the annual renewal process. New products, markets, contracts and exposures keep changing the insurance picture. He said traditional brokers often respond by returning to a small group of carriers with favorable commission economics.
We use technology to analyze your risk, find the right coverage, and negotiate better pricing. It’s a modern alternative to traditional brokers.
Miquel Llobet, Kevin Wu and Wilmer Yan founded Coverwatch
Coverwatch takes another route, according to Wan, by monitoring a business continuously, matching coverage as the company grows, requesting bids from more than 50 carriers for each quote and charging a flat fee. That fee model places Coverwatch on the client’s side, he said.
Coverwatch serves companies with complex, changing insurance needs and buyers looking for one platform to manage the full insurance lifecycle.
Its customers fall into three markets: homeowner associations, venture-backed technology companies and scaling consumer brands in ecommerce and CPG.
The company said it has reversed years of rising premiums for some homeowner association clients. Its technology customers include Pear, the social commerce venture from Lime co-founder Brad Bao. Across its book, Coverwatch said it reduces client insurance costs by 20% to 40% on average, while also closing gaps in coverage.
Miquel Llobet, Kevin Wu and Wilmer Yan founded Coverwatch. Llobet serves as CEO, Wu as COO and Yan as CTO. Llobet previously founded a Y Combinator-backed, tech-enabled HOA management company, where he dealt directly with the difficulty of finding, securing and renewing HOA commercial insurance policies.
That experience shaped Coverwatch’s first market. The platform helps HOAs secure coverage, find and close gaps, avoid overinsurance and lower premiums.
It also reduces administrative work for property managers, saving them tens of hours each month, according to the company. The HOA market remains Coverwatch’s fastest-growing segment.
Llobet said commercial insurance was ready for AI-led change because he had already seen the problem up close while running an HOA management company.
The team spoke with 50 brokerages and concluded that adding AI to the existing process would not solve the issue. Coverwatch had to rebuild the workflow from the ground up, he said, because decades of misaligned incentives had created large downstream problems for commercial insurance buyers.
Coverwatch’s technical work centers on information extraction and summarization. Its system maps each client’s business to the underwriting questions that matter for the right lines of coverage. The team spent months interviewing insurance specialists across sectors and lines of business, then used that expertise to guide Coverwatch searches and refine the process over time.
The result, according to the company, is coverage shaped around each business’s actual risk needs. Coverwatch requests bids from more than 50 carriers at once rather than shopping a client to a small panel. That matters in commercial insurance, where broker market access, submission quality and carrier appetite often determine both price and coverage terms.
Coverwatch also keeps working after a policy binds. The platform gives clients risk reduction recommendations throughout the year, supports contract reviews and insurance planning, and provides claims management and assistance. For business owners, that turns insurance from an annual renewal scramble into an operating system for risk.
Coverwatch has 6 employees and expects to roughly double headcount by the end of 2026. The company said revenue has doubled each month on average since Q2 2026. Most growth has come through customer referrals.
The company currently holds licenses in 17 states. It expects to secure licenses across all 48 continental US states by Q3 2026.
