Coterie

Coterie Insurance is a technology-enabled managing general agency (MGA) focused on small commercial insurance in the United States. It operates a digital quoting and binding platform for independent insurance agents, brokers and digital partners, with a stated submission-to-bind experience of less than one minute. Products include business owners policies (BOP), commercial general liability, professional liability (errors and omissions), and, according to third-party review coverage, cyber and workplace violence insurance. Coterie states it has admitted products in all 50 states and an underwriting appetite covering more than 80% of small businesses, with policies backed by A and A- rated licensed insurers and reinsurers. According to third-party coverage, it operates in all 50 states and Washington, D.C.

The company emphasizes real-time, data-driven underwriting designed specifically for small, new and home-based businesses rather than processes adapted from middle-market underwriting. Coverage can be purchased on a monthly or annual basis, and standard year-long general liability policies are complemented by flexible-duration, project-based coverage offered through partners. Coterie also runs a "Find an Agent" directory that routes small business owners to licensed independent agents and brokers, and it collects initial claim reports and serves as the policyholder contact for claims.

Coterie's headquarters is in Appleton, Wisconsin, and the company operates as a fully digital, remote-friendly business; company press material has also been issued from Cincinnati, and Ohio technology press describes it as a Cincinnati insurtech. Customer support is offered by phone, email, live chat, mail, an online claims reporting tool and an online agent portal, with phone and chat available Monday through Friday, 8:00 a.m. to 8:00 p.m. Eastern.

Founding story

Coterie was launched in 2018 by founders who set out to simplify commercial insurance using digital tools, on the belief that small business insurance could be improved through data and technology for the benefit of agents, brokers and policyholders. David McFarland is CEO and co-founder and previously worked in the insurance industry in the Appleton, Wisconsin area, later relocating his family back to the region.

Business model

Coterie operates as a tech-enabled managing general agency, underwriting and distributing small commercial insurance products that are backed by licensed insurers and reinsurers rated A or A-. Distribution runs primarily through independent agents and brokers, and through digital partners that integrate Coterie via a customizable API; the company's site also directs small business owners to agents in its network.

Revenue derives from small business commercial insurance premiums written through its MGA platform (BOP, general liability and professional liability, among other products), with policies available on monthly or annual terms. The company reported revenue growth of more than 200% in 2023.

Traction

Reported revenue growth of over 200% in 2023 and a developed ultimate loss ratio of less than 60% for eight consecutive quarters. Cumulative funding exceeded $102M as of March 2024. The company states it is used by thousands of partners and agencies, has appetite for 80%+ of small businesses, and had 100+ employees as of October 2024.

Latest developments

In March 2024 Coterie announced a $27M oversubscribed growth capital round including new investor Hiscox and existing investors Intact Ventures, Weatherford Capital and RPM Ventures, taking total funding above $102M; proceeds were earmarked for expanded insurance offerings, more sophisticated underwriting, agent and broker programs, and automation of policyholder servicing. The company was named Best Insurtech by the Fintech Breakthrough Awards. In October 2024 CEO David McFarland spoke at an Appleton founders event, at which point the company was described as having 100+ employees.