Following a tragic accident on a construction site that took the life of a friend, the creators of Safesite were motivated to establish a platform dedicated to the digitalization of construction safety protocols. The insights gained from this platform subsequently led to the creation of Foresight, a new insurtech company specializing in workers’ compensation coverage, earlier this year. The company has recently announced a $15 million funding round secured in May, with Blackhorn Ventures and Transverse Insurance Group among the investors. To this point, Foresight has accumulated $20.5 million in funding from venture capital firms specializing in industrial technology, with Brick and Mortar Ventures and Builders VC leading the investments.

Foresight began operations in August of this year and has already insured risks totaling $30 million. The company projects it will reach $50 million in underwritten premiums by the end of 2021. Utilizing data derived from its affiliated company, Safesite, the platform claims to have achieved a reduction in workers’ compensation incidents of as much as 57%, as verified by a study from actuarial consulting firm Perr & Knight.

Foresight’s core algorithm utilizes Safesite’s data to anticipate potential incidents, pinpoint areas of risk, and refine underwriting practices. By integrating Safesite’s risk management technology and services into each policy, Foresight aims to deliver reduced incident rates and lower premium costs for its clientele.

Within the $57 billion national workers’ compensation market, Foresight concentrates on policies with annual premiums ranging from $150,000 to over $1 million. The company asserts that this particular market segment has received limited attention from well-capitalized insurtech companies like Next Insurance and Pie, which primarily focus on smaller business policies with annual premiums under $50,000.

Foresight and Safesite were founded by David Fontain, Peter Grant, and Leigh Appel, who have a long-standing professional and personal relationship.

Fontain stated: “Foresight reinforces the connection between safety measures and cost savings, all while offering the streamlined and convenient experience that customers expect from insurtech companies. We employ specifically designed technology to encourage positive behavioral changes and present a compelling alternative to conventional workers’ compensation insurance.”

Darren Bechtel, founder and managing director at Brick & Mortar Ventures, added: “Our initial investment was made in 2016, and we’ve known the founders since 2015, when they were operating from temporary workspaces within another company we had invested in. Their original concept was both sophisticated and impactful, and the demonstrable effect of their solution on safety performance, even during initial product testing, was undeniable.”

Currently, Foresight provides coverage in Nevada, Oklahoma, Arizona, Arkansas, Louisiana, and New Mexico. The company anticipates expanding workers’ compensation coverage to the eastern United States and introducing a general liability line of insurance in early 2021.