Coalition, a leader in proactive insurance solutions, has announced the launch of its innovative Active Cyber Policy, a cutting-edge surplus lines cyber policy in the United States. This policy is meticulously designed to shield businesses from the evolving challenges of the digital threat landscape.
Shawn Ram, the Chief Revenue Officer at Coalition, commented, “With the introduction of the Active Cyber Policy, Coalition is establishing the benchmark for superior coverage that provides expanded protection against emerging digital threats, while offering specific benefits to policyholders committed to security.”
Active Insurance is founded on the premise that proactive security initiatives markedly decrease the likelihood and impact of claims. Our data undeniably supports this. Brokers are now empowered to offer enhanced policy terms that bolster coverage for clients who are engaged in managing their cyber risks actively.
The Active Cyber Policy brings a suite of new and enhanced coverage features to the table. Among these are retention discounts—potentially reduced to zero—for each year a policyholder remains claim-free, provided they demonstrate a commitment to risk management and security vigilance.
For the first time, clients can also take advantage of reduced fraud transfer retentions when incidents are reported within 72 hours of the initial fraudulent transfer. This policy incentivizes prompt reporting through financial benefits. It also explicitly covers AI-related security incidents, such as protection against deepfake-enabled fraud and AI-induced security breaches.
Furthermore, during the policy period, the full policy limit is reinstated for each separate incident, ensuring businesses retain maximum coverage despite any prior claims. The policy’s structure has been streamlined, with 11 previously endorsed coverages now incorporated as Insuring Agreements within the base policy, enhancing transparency and simplifying explanations.
The policy also offers a clearer definition of covered scenarios and triggers, along with updated terminology that aligns with today’s cyber landscape.
Starting April 15, 2025, all new and renewal quotes for non-admitted business in the U.S. will be issued under this updated policy form. This coverage is accessible to organizations with annual revenues of up to $5 billion, offering limits of up to $15 million.
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