Assurely and Otso have joined to offer commercial lease insurance.
Assurely is an Insurtech that provides coverage to innovative new businesses like online marketplaces. This is Assurely’s first foray into the commercial real estate industry.
Otso is a Fintech that offers an alternative to traditional cash deposits and letters of credit for landlords.
The two Texas-based firms have partnered to create was is described as the commercial real estate industry’s first insurance for lease security. The new insurance is designed to enable landlords to mitigate the risks of leasing. The policies are backed by Accelerant, a full-service risk exchange that supports the needs of small and medium-sized businesses.
Josh Feinberg, CEO of Otso, said the partnership is a pivotal moment for his company”
“We’ve proven the demand for alternative lease securitization nationally with over $12 million in applications this year alone. Landlords and tenants all over the country are leveraging us to improve leasing experiences and outcomes in their assets. By partnering with Assurely and Accelerant, we’re enhancing the strength of our solutions while expanding the size of the securitization supported; it’s a win-win.”
Ty Sagalow, Assurely’s co-founder and Chief Insurance Officer (and one of Lemonade’s founding members), said the commercial real estate industry is rapidly changing:
“Assurely was built for just such times; it’s where we shine. As the program’s Managing General Underwriter, we are thrilled to partner with Otso, Accelerant, and key CRE players to enable landlords and tenants to succeed in such a changing environment.”
Jeff Radke, CEO of Accelerant, added that it is exciting to see a new specialty insurance ecosystem emerging:
“Commercial real estate’s insurance policies have long lagged behind for lease security, much to the detriment of landlords and tenants across the country. That’s why we’re excited to partner with Otso and Assurely to bring innovation to this space and support policies that will reduce the risks of leasing.”
In a blog post, Assurely said the partnership was an “everybody wins scenario” while noting that there is around $250 billion in commercial real estate lease deposits sitting in bank accounts that is currently “dead money.”
“As of today, we are off and running actively working with landlords, tenants, and large Commercial Real Estate investors and actively writing policies. Of course, we believe there are additional growth opportunities to expand our insurance, data, and risk management partnerships to other perils but in the short-term, we are thrilled to be partnered with Otso, Accelerant, and the stakeholders in the industry to apply this win-win-win solution to a large industry that is changing.”
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