LendingTree and Coverdash Team to Insure Small Businesses

LendingTree has teamed with Coverdash to offer insurance coverage to its small business and startup customers.

The collaboration, announced Wednesday (Nov. 20), expands LendingTree’s financial product suite to allow small and medium-sized businesses (SMBs) access to Coverdash’s fully embedded insurance offering.

“This partnership marks an important step in LendingTree’s evolution by expanding its services for small businesses beyond loans and financial products to now include comprehensive insurance solutions,” the companies said in a news release.

The release cites a Federal Reserve study which showed that businesses that demonstrated lower risk profiles — which includes carrying insurance — were 25% more likely to be approved for loans compared to higher-risk businesses.

Coverage options include general liability, workers’ compensation, business owners’ policies and cyber insurance.

“By integrating Coverdash’s business insurance offering, LendingTree not only enhances its own platform but also empowers small businesses to reduce their risk profile, increasing their chances of securing a loan and supporting their long-term growth,” the release added.

“We’ve always played an integral role in helping small businesses get off the ground with our loans and financing programs, so offering business insurance was the natural next step,” said Jenn Ash, general manager for small business and student loans at LendingTree. “This partnership with Coverdash deepens our commitment to supporting our customers’ growth, reinforcing our position as their trusted, long-term partner for all of their financial services needs.”

Coverdash raised $13.5 million in Series A funding earlier this year to expand its embedded insurance offering.

As noted here at the time, the company’s embedded technology lets partners in any industry offer insurance to their customers within their front-end environments with a single line of code.

Meanwhile, PYMNTS wrote last week about the challenges SMBs face when securing credit — especially in an uncertain economy — and how embedded lending can provide fast and convenient solutions.

“But a key element of embedded lending is the need for SMBs to share their financial data in real time — something many businesses are reluctant to do,” that report said.

Research from the PYMNTS Intelligence report “How Data Sharing Boosts Credit Solutions for SMBs” shows that when businesses agree to share their data, they receive more tailored credit options, borrow more and experience higher satisfaction.

“Real-time access to financial data is critical for lenders to offer customized embedded lending solutions,” PYMNTS wrote. “This access helps lenders assess a business’s cash flow stability and creditworthiness, mitigating risk. According to the report, 100% of lenders in the U.S., U.K., and Australia find real-time data crucial for offering embedded lending options.”

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