What is the Coalition Active Cyber Policy?
The Coalition Active Cyber Policy is our next-generation surplus lines (non-admitted) cyber insurance offering in the US. It directly replaces our previous surplus lines policy. It delivers broader, market-leading coverage with fewer exclusions, while its streamlined structure makes it easier to navigate and present to your clients.
When will the Coalition Active Cyber Policy be available?
The Coalition Active Cyber Policy will be available for quoting starting April 15, 2025. All new surplus lines business and renewal quotes generated on or after April 15th will be issued on the new policy form regardless of the policy effective date.
Why is Coalition updating its surplus lines policy?
The Cyber market has evolved significantly since the introduction of our current Cyber Policy in 2017. Since that time, the cyber risk landscape has continued to develop.
After years of expanding our coverage through endorsements, we're taking the next step by consolidating our extensive policy into a more efficient form, moving several coverages from endorsements to the base form. We’re also adding new, innovative coverages to address emerging threats, and delivering unique advantages to security-conscious policyholders.
Our goals with this update are to:
- Simplify our policy structure without sacrificing coverage breadth
- Create a more user-friendly experience for brokers and insureds
- Consolidate years of enhancements into a cohesive base form
What’s changing with Active Cyber Policy?
The updated policy features:
- A streamlined structure incorporating key coverages into the base form
- Coverage enhancements that expand protection to address emerging risks
- Improved readability through modernized, clear policy language
- Enhanced navigation through digital-first design with hyperlinked sections
Expanded Base Form with Broader Coverage
The new Coalition Active Cyber Policy streamlines the policy structure by integrating the following coverages into the base form (previously available by endorsement).
- 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
In addition, there are several notable coverage enhancements, which you can read about in our policy highlights document.
View the Full Policy Highlights
What resources are available to help me understand the new policy?
The following resources are available to you:
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Comprehensive comparison document showing differences between the original and new policy
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Policy Highlights - Summary of key coverage enhancements
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Specimen Policy (available upon request)
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The Year-Over-Year changes document (included with every renewal quote generated) will include a summary of key changes. (See sample here)
What is Vanishing Retention and how do policyholders qualify for it?
Eligible policyholders can benefit from our Vanishing Retention, which reduces their retention over time as they demonstrate good security hygiene. To qualify, policyholders must take these steps:
- Engage with Coalition Control – Establish and Maintain up-to-date contact information for both the Named Insured and their designated IT/Security contact in Coalition Control.
- Complete the Ransomware Supplemental Application (RSA) – This provides us with current information about their cybersecurity practices.
- Address Critical Security Vulnerabilities – Remediate any critical vulnerabilities identified in Coalition Control within 30 days of notification (or according to an approved alternative remediation timeline).
When policyholders meet these requirements and remain claim-free, their retention will automatically decrease over time: 25% reduction after year one, 50% reduction after year two, and 100% reduction after year three. This applies only to the first claim within the policy period.
Which policyholders are eligible for Vanishing Retention?
The Vanishing Retention endorsement will be automatically applied to any business under $100M in revenue whose policy retentions are $25k or under.
Which policyholders are eligible for Any One Claim (AOC) coverage?
The Any One Claim endorsement will be automatically applied to any business who meet the following criteria:
- Revenue under $100M
- Aggregate limits between $1M and $5M
- Excludes businesses in Title/Escrow and Real Estate Law
How will the transition to the new policy affect my clients?
We're confident that the Active Cyber Policy delivers enhanced coverage over the previous form. Here are the steps we’re taking to make the transition as seamless as possible for your clients:
- For renewals, we'll include a one-year liberalization clause to give you peace of mind. This means that if there are areas where the previous policy provides broader coverage than the Active Cyber Policy, clients automatically receive the broader terms.
- The updated Year-Over-Year changes document that is generated with each quote will summarize key improvements from the transition.
Will quotes issued before April 15 be eligible for the new policy?
Yes, quotes issued before April 15 can be converted to the Active Cyber Policy upon request. Please contact your Coalition representative if you'd like to have an existing quote reissued on the new policy form.
Are there any policyholders who will not be transitioned to the Active Cyber Policy?
Policyholders with Miscellaneous Professional Liability (MPL) coverage will temporarily continue to use the existing surplus lines Cyber policy until a future release. We'll provide specific guidance for these clients separately to ensure they maintain appropriate coverage throughout the transition.