What is the policy fee?
The policy fee covers the costs associated with administering and servicing the US surplus insurance policy and is separate from the policy premium.
How much is the fee?
As of February 10, 2025, the fee will be assessed as follows:
- Up to $24,999 premium → $100 fee
- $25K+ premium → $250 fee
The same structure is used for primary and excess policies.
What policies does this fee apply to?
- The policy fee is assessed on surplus lines (non-admitted) cyber insurance quotes in certain US states. This includes new business and renewal quotes on a primary and excess basis.
- The policy fee is not assessed on admitted quotes or Coalition’s Executive Risks products.
What states is the policy fee assessed in?
As of February 10, 2025, the fee is assessed in the following states:
- Colorado
- Florida
- Hawaii
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Minnesota
- Nebraska
- Nevada
- New Mexico
- Oklahoma
- Pennsylvania
- Texas
- Washington
- Washington, D.C.
- West Virginia
- Wyoming
Is the policy fee commissionable?
No. The policy fee is non-commissionable; new language has been added to the quote document accordingly.
Is the policy fee taxable?
Yes. A policy fee is a type of broker fee and therefore subject to surplus line tax. When surplus lines taxes are applicable, this tax applies to both the premium and the policy fee.
Is the fee refundable?
The fee is refundable for flat cancellations. When a policy is canceled pro-rata, the fee is not refunded.
What quotes does this apply to?
-
Newly created quotes:
- For new business quotes created on or after February 10, the new fee structure will apply (in the appropriate states).
- Quotes that were issued prior to February 10 but have an effective date on or after March 1 will be reissued if they qualify for a lower fee under the new structure.
-
Renewals:
- For renewal quotes generated on or after February 10, the new fee structure will apply (in the appropriate states).
- Renewal quotes that were previously issued with an effective date on or after March 1 will be reissued if they qualify for a lower fee under the new structure.
- Midterm changes: Midterm changes will not result in any change to the fee structure. Whatever fee was assessed at the time of binding (including no fee) will apply.
Insurance products are offered in the U.S. by Coalition Insurance Solutions Inc., (“CIS”) a licensed insurance producer with its principal place of business in San Francisco, CA (Cal. license #0L76155), acting on behalf of a number of unaffiliated insurance companies. Insurance products offered through CIS may not be available in all states. See licenses and disclaimers. Copyright © 2025. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc.