Coverwatch has raised $4.5 million in pre-seed funding led by CoFound and Restive Ventures, with participation from KFund, Liquid2 Ventures, Manresa Ventures, Movi Collective, and Prompt Capital, among others. The company is building an artificial intelligence-driven commercial insurance broker designed to work solely for the client rather than earning commission tied to premium size.
The founders said they started Coverwatch after running an HOA management company and observing premiums climb year after year while coverage gaps went unnoticed, a pattern they attributed to a structural conflict in traditional brokerage, where commissions rise along with the client’s premium. The company said United States companies spent over $400 billion on commercial insurance in 2025, with more than $40 billion of that going to broker commissions.
Coverwatch’s artificial intelligence maps a business to the relevant underwriting questions, shops coverage across more than 60 carriers simultaneously, and monitors risk year-round rather than only at renewal. The company said clients cut insurance costs by 20 to 40 percent on average while closing coverage gaps they were previously unaware of. Coverwatch currently works with homeowner associations, venture-backed technology companies, scaling consumer brands, and contractors, and said its approach extends beyond binding a policy to claims handling, contract reviews, and risk planning through a single customer portal.
KEY QUOTE:
“We asked ourselves a simple question: what would a broker look like if it worked only for the client? That question became Coverwatch.”
Coverwatch statement
