Coverwatch has raised a $4.5 million pre-seed round led by CoFound and Restive, with additional participation from KFund, liquid2 ventures and others, to scale its AI-native commercial insurance platform. The company continuously analyzes a business’s risk, closes coverage gaps, and solicits bids from more than 50 carriers, while charging a flat fee to align incentives with clients rather than with commissions. Coverwatch serves homeowner associations, venture-backed technology companies, and ecommerce/CPG brands, and is licensed in 17 states with plans to be licensed across all 48 continental states by Q3 2026, along with accelerating product development and team expansion. Management has highlighted the limitations of traditional brokers who earn commissions tied to premiums, arguing that Coverwatch’s model avoids that conflict by focusing on optimal coverage at the best price. The firm notes that US commercial insurance spending surpassed $400 billion in 2025, with broker commissions accounting for roughly 10% of that total, and claims potential for 20% to 40% premium savings for clients through its AI-driven approach. The round will fund product development and growth, underscoring Coverwatch’s aim to scale its platform and workforce as it doubles its team by late 2026.