The funding will support the nationwide expansion of the company’s flagship parametric insurance product, GridProtect, and the development of additional offerings aimed at mitigating climate and weather-related risks.

Founded in 2024, Adaptive Insurance provides short-term power outage coverage designed to offer immediate financial relief to businesses affected by brief disruptions. Unlike traditional insurance models, which often involve lengthy claims processes, Adaptive’s parametric approach leverages AI and real-time climate data to enable rapid payouts. The company plans to launch additional products by the end of the year to further address evolving environmental challenges.

“After more than 20 years in the insurance industry, I’ve witnessed firsthand the growing impact of climate shifts on both the insurance market and consumers,” said Mike Gulla, CEO and Co-Founder of Adaptive Insurance. “With the severity of weather extremes, population shifts, regulations, and legacy systems, traditional insurance models simply aren’t agile enough to mitigate the immediate financial shocks that businesses face. With GridProtect and our parametric solutions, we’re offering businesses rapid relief and resilience against everyday weather events, eliminating the traditional waiting periods. We’re immensely grateful to have found like-minded investors who share our vision.”

Investors see Adaptive’s innovative approach as a crucial advancement in climate insurance. “The environment is changing faster than our communities, infrastructure, and traditional insurance can adapt—leaving businesses to bear the risk of increasingly frequent disruptions,” said Kevin Kopczynski at Congruent Ventures. “Starting with GridProtect, Adaptive Insurance combines proven insurance expertise with a forward-thinking, data-driven framework to offer customers simple and timely solutions to complex risks.”

Philip Krim of Montauk Climate echoed this sentiment, emphasising the unique value Adaptive brings to the market. “The most important aspect to understand about Adaptive is that it offers businesses immediate financial relief when short-term power outages strike. Traditional insurance is usually slow and complicated, but Adaptive is changing that. This is the first-ever short-duration power outage insurance product designed specifically for U.S. business owners. Adaptive is filling a massive gap with a simple, fast, and effective platform.”

With this new funding, Adaptive Insurance is poised to reshape how businesses safeguard against climate risks, bringing a modern, technology-driven approach to an industry in need of innovation.