Texas-based companies Otso and Assurely have teamed up to create an insurance coverage option for lease security in the commercial real estate industry. Insurance coverage allows homeowners to reduce rental risks while saving commercial property tenants essential capital when leasing property for their businesses.
Policies are 100% guaranteed by AM Best A- (Excellent) Accelerant, an insurtech platform focused on the needs of small and medium businesses, with a particular focus on P&C insurance. The policies offer a multi-year hedging solution for commercial real estate securitization offering a fully digital experience.
Decision making for potential tenants is powered by Otso’s technology, which uses over 800 credit factors, including exclusive banking history, allowing most apps to be activated within minutes.
Jeff Radke, CEO of Accelerant, said commercial property insurance policies have long lagged behind in securing leases, to the detriment of landlords and tenants across the country. “This is why we are delighted to partner with Otso and Assurely to bring innovation to this space and support policies that will reduce rental risks,” said Radke.
“We have proven the demand for alternative lease securitization nationwide with over $ 12 million in claims this year alone,” said Josh Feinberg, CEO of Otso. “Landlords and renters across the country turn to us to improve rental experiences and the results of their assets. “
Ty Sagalow, co-founder and chief insurance officer of Assurely and one of the founding members of Lemonade, said the commercial real estate industry is changing rapidly and adapting to new market demands.
“Certainly was built for such times; that’s where we shine, ”he said. “As the general underwriter of the program, we are delighted to partner with Otso, Accelerant and CRE’s key players to enable owners and tenants to be successful in such a changing environment. “
“It’s exciting to see a new specialty insurance ecosystem emerge,” Radke said.
Sources: Otso, Assurely, Accelerator
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