Spotlight: Covenant Underwriters – Modernizing Specialty Insurance with Accelerant’s Services Through Data, Technology, and Member-Centric Solutions

The Big Picture

Many small business owners, particularly first- and second-generation immigrants, struggle to find fair and adequate insurance solutions due to outdated risk assessment models. Traditional specialty insurance can overlook or misprice risks for these entrepreneurs, making it difficult to secure proper coverage. Retail brokers navigating this space have been known to encounter inefficiencies, such as slow turnaround times and cumbersome paperwork.

The Solution

Founded in 2018 by Daniel and Wes, Covenant Underwriters leverages data and technology to enhance specialty insurance, making it more accessible and efficient for brokers. Their data-driven underwriting model tailors policies to niche markets, eliminating unnecessary exposures and ensuring businesses get the protection they need. Partnering with Accelerant in 2021 strengthened their capabilities through collaborative underwriting support, actuarial, and Member services. By integrating automation and analytics, Covenant is modernizing specialty insurance and expanding coverage to underserved communities.

A Mission-Driven Approach

Specialty insurance isn’t just a business for Covenant—it’s a mission. Born out of their father’s retail agency, they set out to bridge the gap between retail brokers and specialty insurance. With a commitment to using technology and data to simplify processes, Covenant is transforming how coverage is provided to small businesses in traditionally underserved industries.

A Market Ready for Further Innovation

While standard insurance markets are in the midst of a journey of digital transformation, excess and surplus lines in many cases still rely on manual processes, creating inefficiencies for retail brokers. Daniel and Wes saw an opportunity to change this. Using data from their father’s agency, they launched Covenant to streamline specialty insurance. One of their early programs focused on limited-service hotels, such as Motel 6, followed by others for convenience stores and gas stations. Motel 6’s role in the limited-service sector provided insights that helped refine their underwriting approach.

The Covenant Difference

Unlike many MGAs that rely on standard policy forms, Covenant crafts custom policy language tailored to the unique risks of each niche industry. This ensures precisely the right coverage, eliminating unnecessary exposures and protecting businesses effectively. Their in-house technology team keeps Covenant at the forefront of data utilization, integrating analytics and reporting to support informed decision-making.

“Having a custom policy form written just for these different niches… we can write coverages and restrict coverages based on the loss drivers they have.”, shares Wes.

A Partnership Built on Alignment

When seeking a carrier partner, Covenant prioritized alignment with their data-driven approach. Accelerant was the perfect fit. Transitioning to Accelerant in 2021, they found a model based on collaboration, transparency, and shared insights. Regular meetings, underwriting check-ins, and comprehensive Member Services have fostered a strong relationship built on trust, empowering Covenant to launch new products with confidence.

Wes reflects, “We really liked their data-driven underwriting approach. It lined up well with us… being able to pull in a ton of data for each risk, record it all through to Accelerant, and set up guidelines that were system-driven to a large extent.”

Unlocking Efficiency with Accelerant Member Services

For example, regulatory compliance can be a challenge in specialty insurance, particularly for multi-state operations. Before using Inscipher, a regulatory filing tool discovered through Accelerant’s Member Services, Covenant’s filing process was manual and time-consuming. Now, automation ensures that filings are accurate and on time across 47 states. Accelerant’s Member discount made the transition even more valuable.

Creating Impact in Underserved Communities & Looking Ahead

Covenant’s mission goes beyond business—it’s about supporting those overlooked by traditional carriers.

“Most of our clientele are either first or second-generation Americans, largely immigrant communities,” explains Wes. We use the data approach to cut through those biases that underwriters are able to have. Then we can identify profitable risks and actually provide products for these small business owners that wouldn’t have it otherwise.”

The partnership with Accelerant enhances this capability, helping them reach and support more entrepreneurs. With a strong foundation and an aligned carrier partner, Covenant is poised for continued growth. As they expand offerings and enhance technology, their mission remains clear: to make specialty insurance easy, efficient, and accessible for retail brokers and the businesses they serve.