The Cyber insurance policies available through Coalition are available on both admitted and non-admitted (surplus lines) paper. 

Overview

In general (not specific to Coalition), there are several differences between admitted and surplus coverage that brokers should be aware of.

Admitted insurance

• Admitted insurance is insurance coverage underwritten by an admitted company, which is “an insurance company licensed to do business in a state(s), domiciled in an alternative state or country” (NAIC definition). 
• Admitted carriers must file their rates with the state department of insurance and/or the state insurance commissioner and receive approval.

Surplus lines insurance 

This information is based upon state surplus lines laws and regulations. 

• Surplus lines insurance (also referred to as non-admitted, excess and surplus lines, or E&S insurance) is “specialized property or liability coverage available via nonadmitted insurers where coverage is not available through an admitted insurer, licensed to sell that particular coverage in the state” (NAIC definition). 
• Surplus lines insurance is often used to insure newer risks, hard to place risks, risks where an insured seeks a higher level of coverage than admitted insurers are willing to provide, or emerging risks where there is limited loss history to guide rating criteria. 
• Unlike with admitted insurance, surplus lines insurance rates and forms are not subject to approval by the state departments of insurance or insurance commissioners. However, Surplus lines insurers are still subject to U.S. state rules and regulations. 
• Surplus lines brokers and agents must carry state-specific surplus lines licenses to conduct business. 
• The licensed surplus lines broker is responsible for ensuring the surplus lines insurer meets eligibility criteria to write policies in the state, reporting the surplus lines transaction to state insurance regulators, and remits payment of the surplus lines premium tax to the insured “home state where required.
• In many states, Surplus Lines brokers must fulfill “diligent search” of the admitted market which represents an attempt to find coverage from admitted insurers before a policy is placed in the surplus lines market. The standard to fulfill this requirement can vary from state to state. Generally, 3 companies licensed to write the kind and type of insurance must decline a risk before it can be placed in the surplus lines market. 
• For more information on surplus lines coverage, visit the NAIC resource center.

Cyber insurance coverage offered by Coalition

There are differences in the coverage availability and offerings on the admitted and surplus lines policies offered by Coalition.

Coverage availability

Admitted 

• Limits of up to $5M are available in most states
• Admitted coverage offered by Coalition is available in all 50 states and Washington D.C. for risks with up to $250 million in revenue
• Coverage is provided through Coalition Insurance Company in every state and Washington D.C. with the exception of California, Washington and New Jersey.
• In California, Washington, and New Jersey, admitted coverage is underwritten by Swiss Re. Effective January 1, 2024, the maximum cyber insurance limit we can provide in these 3 states (on admitted coverage) is $2M.

Surplus

• Limits of up to $15M are available
• Surplus lines coverage offered by Coalition is available in all 50 states and Washington D.C. for risks with up to $5 billion in revenue
• In the United States, insurance products are offered 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. Complete license and carrier information is available here. 

Coverage offering

Whether you are quoting admitted or surplus lines coverage, Coalition is committed to helping you solve cyber risk. There are some differences between the two products, which we’ve outlined below.

PLEASE NOTE: All insurance products are governed by the terms and conditions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms and conditions. Any information on this advertising does not in any way alter, supplement, or amend the terms and conditions of the applicable insurance policy and is intended only as a brief summary of such insurance products.

Admitted

• Includes coverages in the base form that are added by endorsement to our surplus lines product, including:
  
  • Impersonation (Phishing)
  • Invoice Manipulation
  • Funds Transfer Liability
  • Proof of Loss Preparation Expenses
  • Criminal Reward 
  • Court Attendance 
• Extended reporting period (ERP) election up to 3 years

Surplus

• Technology Errors & Omissions (available by endorsement)
• Miscellaneous Professional Liability (available by endorsement)
• Non-IT Vendor Contingent Business Interruption (available by endorsement, automatically added on most policies)
• Breach Response explicitly primary over other policies (available by endorsement)
• Extended reporting period (ERP) endorsement allowing for election up to 5 years

The descriptions contained in this communication are for preliminary informational purposes only. In the United States, insurance products offered by Coalition Insurance Solutions, Inc. (“CIS”), a licensed insurance producer and surplus lines broker, (Cal. license # 0L76155) acting on behalf of a number of unaffiliated insurance companies, and available on an admitted basis through Coalition Insurance Company (“CIC”) a licensed insurer (NAIC # 29530). Complete license and carrier information is available here. CIS may receive compensation from an insurer or other intermediary in connection with the sale of insurance. All decisions regarding any insurance products, including approval for coverage, premium, commission and fees, will be made solely by the insurer underwriting the insurance under the insurer’s then-current criteria. All insurance products are governed by the terms and conditions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms and conditions. Any information on this communication does not in any way alter, supplement, or amend the terms and conditions of the applicable insurance policy and is intended only as a brief summary of such insurance products. Policy obligations are the sole responsibility of the issuing insurance carrier. Copyright © 2023. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc.