Coalition

About Coalition

Coalition is a cyber insurance provider that has introduced coverage options specifically designed to address risks stemming from artificial intelligence (AI) technologies. Its most prominent AI-focused offering is the Affirmative AI Endorsement, which can be added to Coalition’s U.S. Surplus and Canada Cyber Insurance policies to explicitly cover incidents involving AI systems.

The Affirmative AI Endorsement broadens the policy definitions of “security failure” and “data breach” to include “AI security events,” meaning failures or breaches directly caused by AI technology. It also expands the scope of funds transfer fraud (FTF) coverage to encompass fraudulent instructions transmitted via deepfakes or other AI-generated modalities, ensuring that losses from increasingly sophisticated AI-enabled scams are recognized under the policy terms.

In April 2025, Coalition rolled out its Active Cyber Policy in the U.S. surplus lines market, which incorporates AI-related security events into its core insuring agreements rather than as add-on endorsements. This policy covers deepfake-enabled FTF and system compromises attributed to AI, and is available to organizations with annual revenues up to $5 billion, offering limits up to $15 million. The Active Cyber Policy also features “Any One Claim” coverage, allowing the full policy limit to reinstate for each separate event, and reduced or eliminated retentions for policyholders demonstrating proactive risk management or rapid incident reporting.

Many of the AI-related enhancements that were initially available only as endorsements-11 in total-have been integrated into Coalition’s standard policy language, reflecting a shift toward treating AI hazards as fundamental cyber exposures. This integration simplifies coverage for brokers and insureds by embedding AI risks directly into the policy framework rather than requiring multiple supplemental endorsements.

Coalition’s AI-centric insurance solutions are positioned to provide clarity and certainty around losses driven by malicious or malfunctioning AI, addressing a gap in traditional cyber insurance products as AI technologies become more prevalent in both attack vectors and operational environments.