Introducing the Active Cyber Policy, a New Standard in Cyber Insurance
Cyber threats are growing more sophisticated by the day. As businesses face an expanding array of risks, from increasingly complex ransomware attacks to emerging threats like deepfakes, the need for forward-thinking cyber insurance has never been more critical.
That's why I'm excited to announce the launch of the new Coalition Active Cyber Policy in the United States — a modernized approach to cyber insurance that delivers clearer, more comprehensive coverage while providing unique advantages for security-conscious organizations.
The Foundation: Active Insurance
At Coalition, we've always believed that the most effective cyber insurance doesn't just respond after an incident — it actively helps prevent losses before they occur. Our Active Insurance model is built on a simple but powerful premise: proactive security measures significantly reduce both the frequency and severity of claims.
And our data proves it. Coalition policyholders experience 73% fewer claims than the industry average* with 52% of incidents resolved at no cost to policyholders with zero erosion of their policy limit.** The Active Insurance approach benefits everyone in the digital ecosystem—from the policyholders themselves to their customers and partners.
Coalition policyholders experience 73% fewer claims than the industry average.*
Why we've updated our policy
Since introducing our first cyber policy in 2017, the cyber risk landscape has evolved dramatically. While we've continuously adapted through endorsements and coverage expansions, the time has come for a comprehensive update that reflects today's digital reality.
Beginning April 15, 2025, all non-admitted new and renewal business in the United States will be issued on the new Active Cyber Policy. The Active Cyber Policy delivers five key benefits:
1. Innovative coverage with advantages for security-conscious policyholders
We're introducing industry-first features that acknowledge and reward organizations that prioritize security:
Vanishing Retention: Eligible businesses that resolve critical vulnerabilities identified in our unified cyber risk management platform, Coalition Control®, can see their retention amounts decrease ultimately to zero with each claim-free year — a tangible benefit for good security hygiene.
Reduced Retention for Early FTF Reporting: Policyholders who report funds transfer fraud (FTF) incidents within 72 hours receive lower FTF retentions — incentivizing quick action that often makes the difference in recovery outcomes.
$0 Retention for Coalition Incident Response: Policyholders using Coalition's expert incident response team face no out-of-pocket costs for digital forensics and incident response services.
2. Expanded protection for emerging risks
The new policy includes explicit, affirmative coverage for evolving digital threats:
Artificial Intelligence-Related Security Events: Including protection against deepfake-enabled fraud and AI-caused security failures.
SEC Cybersecurity Disclosure Requirements: Coverage for legal expenses related to materiality assessments and regulatory filings under new SEC rules.
Expanded Definition of Privacy Liability: Broadens third-party privacy coverage to include violations of privacy law, extending protection beyond just violations of the policyholder's own privacy policy.
By combining comprehensive insurance coverage with advantages for security-conscious organizations, we're helping businesses not just transfer risk, but actively reduce it.
3. Meaningful coverage enhancements
Beyond addressing emerging risks, we've enhanced key coverage elements, including but not limited to:
Any One Claim (AOC) Coverage: For eligible businesses, the policy limit resets for each separate incident during the policy period, ensuring maximum protection regardless of prior incidents.
Affirmative Betterment Costs: Covers the costs to upgrade software and replace computers and networking equipment after a security failure.
Optional Separate Limit for Breach Response Costs: Flexibility to include Breach Response costs as a separate limit, preserving the full limits of the main policy for other potential claims.
4. Simplified structure with greater clarity
We've integrated 11 coverages previously provided by endorsement directly into the base policy as Insuring Agreements, including:
Computer Replacement Costs
Non-IT Vendor Contingent Business Interruption
Reputational Harm Loss
Proof of Loss Preparation
Service Fraud Including Cryptojacking
Impersonation Repair
Invoice Manipulation
Funds Transfer Liability
Technology Errors and Omissions (if applicable)
Court Attendance
Criminal Reward
This integration makes coverage more transparent and easier to understand and explain. Additionally, our digital-first design improves navigation through the policy, allowing brokers and policyholders to quickly locate and understand specific coverages and definitions.
5. Modern language for today's threats
The policy features clearer articulation of covered scenarios and triggers with updated terminology that better reflects today's cyber landscape. This modernization helps minimize ambiguity and helps policyholders understand exactly what protection they have.
Looking ahead
The launch of our Active Cyber Policy represents more than just a policy update — it's a reflection of our commitment to evolving alongside the digital risk landscape. By combining comprehensive insurance coverage with advantages for security-conscious organizations, we're helping businesses not just transfer risk, but actively reduce it.
For brokers, this means the ability to offer clients a truly differentiated product that delivers tangible value beyond traditional insurance. For policyholders, it means protection that acknowledges and provides advantages for their security investments.
Our approach represents the future of cyber insurance — one where insurance providers, brokers, and policyholders work together to create a more resilient digital ecosystem. The new Active Cyber Policy is an important step forward in that journey, and I'm excited to see the positive impact it will have on our clients and partners.
