Otso to offer office deposit replacement insurance backed by Accelerant
Otso Corp and Assurely partnered to offer insurance policies for lease security. The policies are 100% backed by AM Best A- (Excellent) rated “non-carrier carrier” Accelerant Holdings , whose technology allows MGUs to serve SMBs. “The insurance allows landlords to reduce the risks of leasing while saving tenants of commercial property essential capital when leasing property for their businesses.”
Otso’s technology is used to make decisions for prospective tenants, and it examines over 800 credit variables, including exclusive banking history, to enable most applications to be activated in minutes.
Founded in 2019 and a team of ~6, Otso is a seed-stage company based in Texas. Its policies are currently available in 40 states for commercial real estate office, retail, and industrial/flex properties covering lease security needs from $1,000-$500,000.
“This is a pivotal moment for Otso’s story. 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.” – Josh Feinberg, CEO of Otso.
Bottom Line: This isn’t a new concept or product. In the US, TheGuarantors offers a product called Securiti that’s underwritten by Chubb and is eligible for office leases with eligible deposits of $25k or more. And in the UK, Insurami offers office deposit replacement insurance. But if you’re looking for red flags, look at Salaryo , the NYC-based company that once operated in the space of Insurami but has since pivoted to operate in the space of instant financing for small businesses.