ImpactAlpha, September 22 — Most U.S. businesses are required to carry workers’ compensation insurance, which covers medical expenses, lost wages and rehabilitation costs for employees injured at work.
Washington, D.C.-based Pie Insurance, which says more than three-quarters of small businesses overpay for such coverage, has raised $315 million to bring a lower-cost alternative.
The insurtech company provides workers comp insurance in 39 states and says it can help business owners save up to 30%. The company partners with more than 2,800 local and national insurance agencies. “Pie is disrupting the highly fragmented small business commercial insurance market” by more accurately pricing and underwriting insurance risks, said Pie’s John Swigart.
The Series D investment more than doubles Pie Insurance’s total raised to over $615 million. “This round of financing is monumental,” said Swigart. “Growth-stage startups, specifically insurtechs, are facing a challenging fundraising environment.”
Centerbridge Partners and Allianz X, the digital investments division of Allianz Group led the round. Other investors include White Mountains Insurance Group, Gallatin Point Capital, Greycroft and Acrew Capital.