Coalition Unveils Innovative Cyber Insurance Solution for U.S. Businesses to Enhance Digital Security
Coalition, recognized as the world’s first Active Insurance provider, has unveiled its innovative Coalition Active Cyber Policy, a revamped surplus lines cyber insurance solution specifically designed for the U.S. market. This initiative by the San Francisco-based company aims to transform the way businesses address digital threats, integrating proactive cybersecurity strategies with conventional insurance coverage, as highlighted by InsurTech Insights.
Responding to Evolving Cyber Threats
As cyber attacks grow in complexity and frequency, Coalition acknowledges that businesses require more than mere passive coverage; they need active risk management solutions. The newly launched Active Cyber Policy introduces several data-driven enhancements tailored for today’s cyber risk landscape.
Key Features of the Coalition Active Cyber Policy
- Vanishing Retention: Policyholders can benefit from reduced retentions for claim-free years.
- Reduced Retention for Early Funds Transfer Fraud (FTF) Reporting: Financial incentives are provided for quick reporting of fraudulent activities.
- Affirmative AI Coverage: Protection against AI-related threats, including deepfake-enabled fraud.
- Any One Claim Coverage: Policy limits reset for each separate incident during the policy term.
A standout characteristic of this policy is its streamlined structure. Eleven coverages, previously available only through endorsements, are now integrated directly into the base policy as Insuring Agreements. The language of the policy has also been updated for clarity, utilizing modern terminology and clearly outlining coverage triggers.
Policy Availability and Coverage Limits
Starting from April 15, 2025, all non-admitted new business and renewal quotes in the U.S. will be issued under the new Active Cyber Policy. This policy caters to organizations with annual revenues of up to $5 billion and offers coverage limits of up to $15 million.
Statements from Coalition Leadership
Shawn Ram, Coalition’s Chief Revenue Officer, stated, “With the launch of the Active Cyber Policy, Coalition is setting the benchmark for market-leading coverage that provides expanded protection against emerging digital threats and offers specific benefits for security-conscious policyholders. Our approach to Active Insurance is founded on the premise that proactive security measures can significantly reduce the frequency and severity of claims, and our data supports this assertion. Now, brokers can present improved policy terms that reward clients who are actively involved in managing cyber risks.”
For more information on cyber insurance options, visit our Cyber Insurance page.
Explore more about proactive cybersecurity measures and their importance in today’s business environment through resources available at Cybersecurity.gov.
