INSURTAX
AI-powered IRS Audit Insurance for small businesses, backed by Lloyd's of London, with same-day underwriting and claims processing via proprietary AI platform.
Overview
INSURTAX is an AI-powered Managing General Agent (MGA) that provides IRS Audit Insurance for small businesses, backed by select underwriters at Lloyd's of London led by Tokio Marine Kiln (Syndicate 510). Founded in 2021, the company addresses a critical gap in tax risk protection -- offering institutional-grade coverage that small business owners, CPAs, and tax professionals have traditionally been unable to access at an affordable price.
Operating as a Lloyd's coverholder, INSURTAX combines proprietary AI-driven underwriting technology with the financial strength of Lloyd's (AA- rated) to deliver affordable, reliable protection against the financial risks of IRS audits. The platform provides same-day quotes through automated risk assessment and rapid claims processing. Coverage includes tax adjustments, penalties and interest, professional defense fees, and Tax Court legal expenses.
The company distributes its product through three channels: direct-to-consumer via its digital platform, through CPAs and tax professionals, and via insurance broker partners. Its target market is small businesses with under USD 50 million in annual revenue, self-employed professionals, and entrepreneurs. The mission is to ensure that risks like audits, compliance challenges, and tax uncertainty do not stand in the way of small business success.
INSURTAX was founded by a multidisciplinary team combining expertise in technology, tax law, insurance, and finance. The company completed a Seed round in 2023 with backing from ff Venture Capital, Plug and Play Tech Center, Hustle & Trust Ventures, The Israeli Insurtech Accelerator, and Techstars.
Products & Services
IRS Audit Insurance
INSURTAX's flagship product is IRS Audit Insurance backed by select underwriters at Lloyd's of London, led by Managing Agent Tokio Marine Kiln, Syndicate 510 (AA- rated). Coverage Includes:
Key Features
- Tax Adjustments: Covers disallowed deductions and unapproved credits resulting from an IRS audit
- Penalties & Interest: Covers penalties and accrued interest arising from audit findings
- Defense Costs: Reimburses professional fees for IRS audit representation by CPAs, attorneys, and other professionals (up to USD 25K--USD 750K)
- Tax Court Legal Expense: Covers legal fees for disputes escalating to Tax Court
- Coverage limits up to USD 250,000 per tax return
- Default coverage term: 3 years, with optional 7-year extension
- Monthly premiums: approximately USD 30--USD 250 for businesses under USD 50 million in assets or gross receipts
- Starting price: approximately USD 56/month (roughly USD 1/day)
- Same-day quotes via AI-driven underwriting platform
- Direct-to-consumer via digital platform
- CPAs and tax professionals (partner referral program)
- Insurance brokers (commercial lines and specialty risks)
At a Glance
- Founded
- 2021
- Headquarters
- New York, NY, USA
- Employees
- 11-50
- Funding
- Seed (USD 120K, 2023)
Category & Focus
- Category
- MGA
- Subcategories
- Tax Insurance AI Underwriting SMB Insurance Specialty Lines
- Insurance Verticals
- Specialty Lines SMB Tax Risk
- Target Customers
- Small Businesses, CPAs, Tax Professionals, Insurance Brokers, Self-Employed Professionals
Customers
- Small businesses with annual revenue under USD 50 million
- Self-employed professionals and entrepreneurs
- Certified Public Accountants (CPAs) and tax professionals seeking coverage for their clients
- Insurance brokers looking to expand their small business product offerings
Last updated: 2026-05-17