AI COVERAGE
How AI risk is covered*
AI changes how threats are delivered. Not whether you're covered. Coalition’s Active Cyber Policy is built to respond to today's cyber threats, and whatever comes next.
Our Approach
Coverage that’s ready for AI risk
Whether a threat actor uses deepfakes or LLMs, Active Insurance is designed to respond to the outcome of the incident, not the technology behind it.
Coalition's position on AI coverage is clear
Coalition removes the guesswork around AI coverage by explicitly defining how cyber policies respond to AI-driven threats.
Clear policy language
Outcome-based coverage
No AI exclusions, no surprises
Specialized support when deepfakes strike
Deepfakes aren't just used to commit fraud. They can also damage reputations. That's why we built the Deepfake Response Endorsement to add support.
Forensic analysis to evaluate the deepfake
Legal support to remove content from online platforms
Crisis communications to help manage the fallout
Coverage in Action
How Active Cyber Policy covers AI claims
Most AI-driven incidents aren't new risks. They're existing threats powered by new technology. See how our cyber coverage responds.
Scenario
Traditional Claim
AI-Driven Claim
Is It Covered?
Security Failure
Attacker exploits an unpatched vulnerability to access systems and exfiltrate customer data.
Attacker uses a prompt injection exploit against an AI tool to access and exfiltrate customer data.
Breach Response Costs insuring agreement.
Funds Transfer Fraud
Employee tricked into an erroneous payment by an email impersonating a vendor.
Employee receives an AI-cloned phone call impersonating a known vendor, directing a payment to a fraudulent account.
Funds Transfer Fraud and Social Engineering insuring agreement.
Social Engineering
Employee tricked into updating vendor banking details via a spoofed email.
Employee transfers funds after a deepfake video call impersonating the CFO directs an urgent wire.
Funds Transfer Fraud and Social Engineering insuring agreement.
Ransomware
Attacker deploys malware that encrypts company files and demands payment to restore access.
Attacker deploys AI-generated malware that evades detection, encrypts files, and demands a ransom.
Ransomware and Cyber Extortion insuring agreement.
Defamation
Business makes a disparaging social media post about a competitor.
Business sends out an AI-generated post disparaging a competitor.
Media Liability insuring agreement.
Web Privacy
Business accused of wrongful data sharing via a Meta Pixel.
Business accused of wrongful data sharing via an AI chatbot.
Available via the Enhanced Privacy Endorsement (typically sublimited).**
Technology Errors and Omissions
Tech business sued by their customer for negligence due to errors in the latest release of their cloud product.
Tech business sued by their customer for negligence related to their AI product's performance deteriorating over time
Available via the Technology Errors & Omissions insuring agreement (for eligible businesses).
Business Interruption
Business operations disrupted due to an outage at its email service hosted in US-East-1.
Business operations disrupted due to an outage at its AI customer service tool hosted in US-East-1.
Business Interruption insuring agreement.
The Industry Divide
How your cyber policy addresses AI risk matters
Not all cyber policies handle AI the same way. Your carrier’s approach determines what happens next.
The Coalition Way: Affirmative Clarity
Coalition explicitly defines how existing coverage responds to AI-driven threats. Even when AI is involved, you’re covered.
Exclusions leave gaps
Some carriers add broad AI exclusions, using the presence of AI to deny claims. Coverage can disappear when your business needs it most.
Silence creates uncertainty
Vague policy language can lead to coverage disputes. Without explicit terms, you risk exposure at the worst possible time.
Resources
Go deeper on AI Risk
Learn more about Coalition’s position on AI, plus answers to the questions we hear most.
