InsureTax

InsureTax is an insurtech company offering IRS audit insurance for small and mid-sized businesses in the United States. Policies are triggered by a formal IRS audit notice (for example IRS Letters 566, 525 or 2205) and provide an immediate cash payout tied to average additional collections — tax adjustments, penalties and interest — together with coverage for professional defense costs up to the policy limit. Covered items include adjustments from disallowed deductions or unapproved credits, reclassification of independent contractors as employees, IRS penalties and accrued interest, professional representation fees, and legal expenses if a dispute escalates to tax court. Coverage is limited to federal income tax audits conducted by the IRS — correspondence, office and field audits — and excludes state tax, VAT, sales tax and payroll tax audits. By default the policy covers returns for the prior three years, reflecting the IRS statute of limitations.

Policies are underwritten by certain underwriters at Lloyd's of London, led by managing agent Tokio Marine Kiln, Syndicate 510 (AA- rated), with InsureTax acting as a coverholder in the Lloyd's network. The company positions the product as tax liability protection previously available mainly to large corporations, now packaged for businesses under roughly $50 million in revenue or assets. Monthly premiums are quoted in the $30-$250 range for businesses under $50M in assets or gross receipts, with entry-level coverage described as starting at $1 per day.

The company was founded in 2021 and lists 11-20 employees. Its stated market is the roughly 37 million U.S. SMEs exposed to tax scrutiny.

Founding story

Founded in 2021 by a team of entrepreneurs who identified that large corporations could buy tax insurance while small businesses, which lack in-house tax departments, remained exposed to the cost of IRS audits. CEO and co-founder Guy Kohn, an information systems engineer who previously worked at HP and ironSource, co-founded the company to bring Lloyd's-backed tax risk protection to smaller firms.

Business model

InsureTax underwrites and distributes an insurance product rather than advisory services: it operates as a Lloyd's coverholder, binding policies underwritten by underwriters at Lloyd's led by Tokio Marine Kiln, Syndicate 510, and administers quoting, compliance checks and claims through its own platform.

Revenue derives from insurance premiums on IRS audit insurance policies, quoted as recurring monthly premiums typically between $30 and $250 for businesses under $50M in assets or gross receipts, with flexible payment options and coverage marketed from $1 per day.

Traction

The company reports being a Lloyd's coverholder with policies in market and a distribution focus on CPAs and brokers. A third-party directory lists 11-20 employees. In connection with its seed round it announced a partnership with Tokio Marine Kiln and the addition of ffVC partner Alex Katz to its board.

Latest developments

InsureTax operates a live quoting site for IRS audit insurance underwritten at Lloyd's through Tokio Marine Kiln Syndicate 510, and markets dedicated programs for small businesses, CPAs and insurance brokers, including a CPA Co-Pilot Program.