Costanoa Ventures is backing Shepherd to transform construction safety through innovative insurance solutions.
Construction insurance company Shepherd achieved a five-fold increase in gross written premiums within 18 months of its launch for 2021. The company began by offering Excess Liability but quickly expanded to include all of the primary casualty insurance lines: General Liability (including Commercial Auto), Workers’ Compensation, and Workers’ Compensation. This growth was not just a numerical achievement; it marked an industry paradigm shift.
Shepherd’s technology-driven underwriting is now the preferred process of top retail insurance brokers working in construction. Boasting a remarkable 24-hour submission-to-indication turnaround, Shepherd leaves competitors trailing weeks behind.
“There’s an urgent need for innovative solutions in the commercial construction industry,” said Justin Levine, CEO and co-founder of Shepherd.
Our mission at Shepherd Insurance is simple but ambitious: To create the first comprehensive platform combining top-tier insurance products with world-class technology to help commercial businesses manage risk and avoid losses.
AI-Powered Progress: Shepherd’s Funding Leap
Shepherd has secured an impressive US$13.5m in a round of funding spearheaded by Costanoa Ventures. This investment will be used to expand its underwriting team and software development. It will also accelerate product development and increase its software offerings in the US$ 10 trillion construction industry.
Shepherd Compliance is the latest addition to Shepherd’s arsenal. It’s an AI-assisted software designed to automate and simplify vendor compliance reviews. The software is tailored for Shepherd policyholders and seamlessly integrates into project management platforms such as Procore to ensure a user-friendly interface across all existing systems.
“Commercial Construction is a vital and central driver for the overall economy but has been ignored by technology providers for many years,” said Mark Selcow. He is a General Partner of Costanoa Ventures and a newly appointed Shepherd board member.
“High insurance rates and unavailability of cover plague a sector that already struggles with tight margins. Shepherd’s team is embracing technology and developing innovative products using modern software to produce a superior insurance product. Shepherd offers clients better-fitting policies at a lower price, thanks to the data and technology advantages.
Intact Ventures and Era Ventures are among the industry leaders who have backed this round of funding. Greenlight Re and Spark Capital also contributed to it, demonstrating their collective belief in Shepherd’s transformative approach.
Mission Tech-Forward: Reshaping the future of construction
Shepherd’s philosophy is to use technology to revolutionize a sector plagued with high costs and a lack of coverage. The company envisions an industry where construction companies can manage risks and minimize losses by combining cutting-edge software and insurance products.
The newly acquired funds will boost Shepherd’s mission to be a tech-forward company. The focus is on strengthening the underwriting, software, and innovation teams, as well as expanding the software suite. This will create a powerful synergy to benefit the commercial construction industry.
Shepherd’s journey goes beyond growth and money; it is a commitment to redefining sustainability and safety in construction. Shepherd’s combination of insurance expertise and technological innovation is leading a new age in construction, where efficiency, safety, and innovative solutions are the norm.