CoverWallet Raises $18.5 Million to Expand Small Business Insurance Platform

In Good Company
CoverWallet is proud to announce that we 
raised an $18.5 million Series B financing round led by Foundation Capital, joining existing investors Union Square Ventures, Index Ventures, Two Sigma Ventures, CV Starr, Founder Collective and Highland Capital Partners. They’re some of the best and most prestigious venture capital firms in the world, and we’re pleased to call them partners.

So, what now? CoverWallet is going to use this funding to grow our team, expand our services and better our customer experience. 

Since we started, CoverWallet has been revolutionizing the business owner’s experience of understanding and buying commercial insurance. We’re excited to plow this new investment into further enhancements in that experience. If you’re the type of person who likes press releases, you can check it out here.

     –  “Soon enough, folks won’t even remember how offline and time-consuming dealing with business insurance used to be.”  – Rashmi Melgiri, Co-Founder of CoverWallet

     –  “We are very excited about the next few years. One thing I didn’t expect, is the personal satisfaction obtained from the social impact of insurance. In the last year, a few businesses that CoverWallet had insured were severely affected by natural disasters and had to shut down for multiple days. The insurance that we provided covered their loss of income. Without it, many small business owners and their families would have been out of business and lost everything that they had built over the years. When you can build a big business, reinvent a large industry with technology and help people, that’s beyond fulfilling”  – Inaki Berenguer, Co-Founder of CoverWallet

We are delighted to be a part of a growing group of companies to have received investments, from the same investors, such as Netflix, Dropbox, and Facebook. These name brands have made a lasting impact in each of their respective industries, positively changing the lives of millions of consumers, and we hope to do the same. In adding our name to that list, we know we have a lot to strive for, so if you’re an existing customer or are considering purchasing your insurance through us, just know, you’re in good company!

Ready to see what all the fuss is about? Click here to start an application and get free insurance quotes for your small business!

 

2017 CoverWallet Small Business Scholarship Winner – Julia Han

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Beach Bowls Acai Cafe

The CoverWallet Small Business Scholarship encourages entrepreneurship in students by asking them to take on the perspective of a local small business owner. Students share their perspective on the opportunities and challenges faced by a business in their community.

Student: Julia Han, University of Southern California 

Small Business: Beach Bowls Acai CAfe

The granola and acai berries collide upon the rough pink battlefield. Encapsulated in the war of crunchy vs. smooth, salty vs. sweet, the two armies intermix repetitively until they become indistinguishable before beginning the descent down the dark chasm into my stomach. The first bite of my Beach Bowls Acai Café experience was this delectable war of tastes, amalgamating into a single, gloriously refreshing sensation.

Foundational Tools To Jumpstart Your Small Business!

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Starting any business can seem daunting. There are many decisions to be made and sometimes it is difficult to prioritize where to start and what tools can be of most use to you as you are laying the foundation for your company. There is an overwhelming number of applications and tools to sift through in the search for that perfect fit in your pursuit of growth, revenue, or creation of a new product.

We at CoverWallet wanted to take a moment away from our regularly scheduled programming to offer our recommendations on a few products that not only helped us get off the ground but helped take us to the next level.

Equifax Data Breach – The Need for Cyber Liability Protection

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Equifax, one of the three major consumer credit reporting agencies announced this week that they were subject to a prolonged and sustained data breach from mid-May to July. The breach, discovered on July 29, put 143 million consumers personal information (names, birthdays, addresses, social security numbers) at risk. Initial indications are that more than 200,000 consumers had their credit card numbers stolen.

Unfortunately, this type of breach is now a regular occurrence in our day and age. From Yahoo to Target, consumer information has never been more vulnerable. The Equifax breach is of special importance due to the nature of the personal information taken and also due in part to the fact that Equifax has suffered similar breaches in the recent past with no real improvements to their website vulnerabilities. In 2016, Equifax suffered a breach that resulted in the loss of W-2 tax and salary data from their users. Security professionals have been critical of the organization for not taking sufficient nor necessary steps to improve its security practices after previous breaches.(1)

Equifax has offered credit monitoring and protection services to all consumers in the United States, even if their data was not compromised. This goes beyond what is legally required but, given the severity of the breach, could be considered a corrective measure that necessarily falls short.

Insurance Impact

  • Nearly every state has different notification laws of a cyber breach or event. Notification costs for each record lost/stolen is $141 on average. (2)
  • Given the information Equifax stores and the previous security breaches, Equifax likely purchases a substantial Cyber insurance policy to help protect against events just like this.  
  • Equifax is likely facing a large D&O suit from consumers and shareholders alike given the severity of this event, the lack of corrective measures from previous data breaches and due to reported sales of shares by executives after discovery of the breach and before reporting the breach.(3)

How Do I Protect My Business?

It’s increasingly important for businesses to learn how to protect themselves against these events. While your client and proprietary data are always at risk, a cyber liability policy can help hedge or completely offset the financial impact of a potential breach. Recent reports indicate that the monetary value of data is increasing year-over-year. Without the proper insurance, your business might not be able to survive a cyber breach.

Want to know more or figure out what a cyber liability policy would cost? Fill out an application here or give us a call at (646) 844-9933 !

Sources

  1. Equifax Says Cyberattack May Have Affected 143 Million in the U.S., New York Times
  2. IBM 2017 Cost of Data Breach Study, IBM
  3. Equifax Says Cyberattack May Have Affected 143 Million in the U.S., New York Times

 

 

 

Introducing Paul Rosen as CoverWallet’s COO

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We are excited to introduce Paul Rosen, as our newest addition to the CoverWallet team! Paul joins CoverWallet as our new Chief Operating Officer, to help guide us as we strive to provide our customers best-in-class products and service. Paul is joining us from OnDeck, a small-business lender, where he served as the Chief Sales Officer over the past 6 years. During his time leading the sales organization at OnDeck, Paul grew annual revenues from $10M to over $300M and played a crucial role in OnDeck’s transformation from financial startup to public company.

Paul’s track record growing tech-enabled, leading financial organizations within regulated and competitive markets will allow CoverWallet to expedite the requisite steps to become the go-to resource for all things business insurance for small businesses everywhere! We are thrilled that someone of his caliber has joined our already deep team and brings with him an understanding of our vision and commitment to bring a better way to understand, buy and manage insurance, all in one place!

Based in New York City, CoverWallet launched in early 2016. CoverWallet combines data, thoughtful design, and technology to help small businesses deal with their insurance needs with a few clicks, whether from their phone or online. With an intelligent assessment system and concierge-like service, CoverWallet saves time and provides peace of mind by making understanding, buying and managing insurance simple and intuitive. CoverWallet recently won “Best Insurtech Solution” at the 2017 Benzinga FinTech Awards. For more information, please visit www.coverwallet.com.

For more about Paul joining CoverWallet, click here.

 

 

Small Business Story: Florida Ave. Grill Maintains 1944 Ambiance Despite Facing Risks

The CoverWallet Small Business Scholarship encourages entrepreneurship in students by asking them to take on the perspective of a local small business owner. Students share their perspective on the opportunities and challenges faced by a business in their community.

Student: Breanna Lipsey,  Howard University

Small Business: Florida Avenue Grill

I’m still trying to figure out what reminds each customer of home. Is it the varying shades of chipped white china the food is served on? Are there particular ingredients that are used in every household across America? Does the 90’s R&B take them back to a time of free-spirited love and unity? Whatever it is, Florida Avenue Grill is able to deliver that “mama’s cooking” every time. People from all across the country claim The Grill must have their kin in the kitchen. Locals sometimes wait an hour just to sit next to a total stranger and eat breakfast at 3:00 PM. Whatever the circumstance, customers come expecting a soulfully cooked meal and end up leaving with a therapeutic reminder of the beauty of a home-cooked meal. I adore Florida Avenue Grill for providing that home feeling for each and every one of its guests but also fear that it may be its greatest risk factor. The demands of its surrounding community has changed; once coined as The Chocolate City, Washington, D.C. is now experiencing gentrification. The neighborhoods around Florida Avenue Grill, which were once filled with college students, families, and the “Go-Getters” of the time, are now filled with young professionals who live fast-paced lives. Florida Avenue Grill offers a full dine-in experience, catered to each of its customers. This means longer wait times for food, which is time these young professionals do not have.

Small Business Story: The Linden Store Flourishes in Small Restaurant Market

The CoverWallet Small Business Scholarship encourages entrepreneurship in students by asking them to take on the perspective of a local small business owner. Students share their perspective on the opportunities and challenges faced by a business in their community.

Student: Nathan Chiu, University of Pennsylvania

Small Business: Linden Store 

The scent of cured meat greets me as I open the deli door. Already, a line has formed, winding its way around the store. I don’t mind waiting. The premium sandwiches make the trip worth it and at least there’s air conditioning and shelter from the sweltering heat outside. Looking around, I see some familiar faces. Turns out they’re my high school classmates. I give a friendly wave and say hi. At last it’s my turn to order at the counter. I order my usual “Isabella” sandwich, a sumptuous sandwich containing prosciutto, thick slabs of cheese, and tomato. I pay at the register, step out of the store, and drive home.