California-Based Coverwatch Bags $4.5M in Pre-Seed Funding

The company will use the funding to accelerate product development and expand its team.

Traditional insurance brokers earn commissions based on the size of a customer's insurance premium. This means they often make more money when clients pay higher premiums, creating a conflict of interest. In 2025, U.S. businesses spent more than $400 billion on commercial insurance, with over $40 billion going to broker commissions.

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Coverwatch uses AI to automate policy reviews, comparisons and insurance services. Its platform helps businesses get coverage that matches their actual risks while combining AI with human experts to deliver a more transparent, and efficient insurance experience.

Coverwatch helps businesses with complex and changing insurance needs manage their entire insurance process on one platform. It ensures customers get the right coverage at the best possible price.

The company serves homeowner associations, venture-backed technology companies, and fast-growing ecommerce and consumer brands. On average, Coverwatch helps clients reduce insurance costs by 20% to 40% while improving their insurance coverage.

Coverwatch uses AI to understand each customer's business and match it with the right insurance coverage. The platform is built using insights from insurance experts and compares quotes from more than 50 insurance carriers to find the best option.

Its service continues even after the policy is purchased. Coverwatch provides risk reduction advice, helps review contracts, supports insurance planning, and assists customers with claims throughout the year.

“Running a business today means managing risks that evolve faster than an annual renewal cycle can keep up with - new products, new markets, new contracts, new exposures," said Jordan Wan, Founder and General Partner at CoFound. "Legacy brokers answer that complexity by going back to the same few carriers that pay the best commissions. Coverwatch is building something different: the system of intelligence for commercial insurance.

About Coverwatch

Founded by Miquel Llobet, Wilmer Yan, and Kevin Wu, Coverwatch is an AI powered commercial insurance platform that helps businesses find the right insurance coverage at the best price. Unlike traditional insurance brokers who earn commissions based on premium costs, Coverwatch charges a flat fee. This allows the company to focus on finding the best coverage for customers instead of the most expensive policy.

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