Joining the round are Foundation Capital, Revolution’s Rise of the Rest Seed Fund, Clocktower Technology Ventures, Sure Ventures, and several angel investors, including independent agents and buyers of workers’ compensation.

Insurate says its Safe-Tier Index uses proprietary data including a predictive score to identify safe businesses and help in pricing insurance. The wholesaler and managing general agency said its average policy savings to date have been 24%. It requires that insureds have more than 20 employees and have operated for at least three years. Industrial-sector companies are most likely to see the bigger savings, according to the firm, because its data analysis is centered on those businesses. It currently offers policies in 35 states.

Insurate’s coverages are offered in partnership with Key Risk (a Berkley Company), Encova, Liberty Mutual, AmTrust and other workers’ compensation insurers.

“Many small industrial businesses take safety seriously, but they are penalized up to 95% in the pricing of work comp based on perceptions that their work is dangerous,” said Joe McIlhon, CEO of Insurate, which launched in 2019. “We are bringing data intelligence to discern safe from unsafe, which we combine with human intelligence, to bring fair pricing to safety-conscious industrial companies in the $22B high risk segment of the statutory work comp market.”

McIlhon, a former independent agent with 17 years in workers’ compensation insurance, emphasized the importance of the independent agency channel. “We are aligning fairness, transparency, and value to create the ultimate customer acquisition and retention platform for the trusted partners of high hazard companies, the independent agents,” he said.

In August, Insurate announced a partnership with YellowBird, an industry-specific workplace safety and compliance consulting platform that is now available to its policyholders.

HSCM Ventures is the venture capital arm of Hudson Structured Capital Management Ltd., doing its re/insurance business as HSCM Bermuda.