AI COVERAGE
How AI risk is covered*
AI changes how threats are delivered. Not whether you're covered. Coalition’s Active Cyber Policy is built to respond to today's cyber threats, and whatever comes next.
Our Approach
Coverage that’s ready for AI risk
Whether a threat actor uses deepfakes or LLMs, Active Insurance is designed to respond to the outcome of the incident, not the technology behind it.
Coalition's position on AI coverage is clear
Coalition removes the guesswork around AI coverage by explicitly defining how cyber policies respond to AI-driven threats.
Clear policy language
Outcome-based coverage
No AI exclusions, no surprises
Specialized support when deepfakes strike
Deepfakes aren't just used to commit fraud. They can also damage reputations. That's why we built the Deepfake Response Endorsement to add support.
Forensic analysis to evaluate the deepfake
Legal support to remove content from online platforms
Crisis communications to help manage the fallout
Coverage in Action
How Active Cyber Policy covers
AI claims
Most AI-driven cyber incidents aren't new risks. They're existing threats powered by new technology.
See how our cyber coverage responds.
| Scenario | Traditional Claim | AI-Driven Claim | Is It Covered? |
|---|---|---|---|
| Security Failure | Attacker exploits an unpatched vulnerability to access systems and exfiltrate customer data. | Attacker uses a prompt injection exploit against an AI tool to access and exfiltrate customer data. | Yes Breach Response Costs insuring agreement. |
| Funds Transfer Fraud | Employee tricked into an erroneous payment by an email impersonating a vendor. | Employee receives an AI-cloned phone call impersonating a known vendor, directing a payment to a fraudulent account. | Yes Funds Transfer Fraud and Social Engineering insuring agreement. |
| Social Engineering | Employee tricked into updating vendor banking details via a spoofed email. | Employee transfers funds after a deepfake video call impersonating the CFO directs an urgent wire. | Yes Funds Transfer Fraud and Social Engineering insuring agreement. |
| Ransomware | Attacker deploys malware that encrypts company files and demands payment to restore access. | Attacker deploys AI-generated malware that evades detection, encrypts files, and demands a ransom. | Yes Ransomware and Cyber Extortion insuring agreement. |
| Defamation | Business makes a disparaging social media post about a competitor. | Business sends out an AI-generated post disparaging a competitor. | Yes Media Liability insuring agreement. |
| Web Privacy | Business accused of wrongful data sharing via a Meta Pixel. | Business accused of wrongful data sharing via an AI chatbot. | Yes Available via the Enhanced Privacy Endorsement (typically sublimited).** |
The Industry Divide
How your cyber policy addresses AI risk matters
Not all cyber policies handle AI the same way. Your carrier’s approach determines what happens next.
Exclusions leave gaps
Some carriers add broad AI exclusions, using the presence of AI to deny claims. Coverage can disappear when your business needs it most.
Silence creates uncertainty
Vague policy language can lead to coverage disputes. Without explicit terms, you risk exposure at the worst possible time.
The Coalition Way: Affirmative Clarity
Coalition explicitly defines how existing coverage responds to AI-driven threats. Even when AI is involved, you’re covered.
Resources and FAQ
Go deeper on AI Risk
Learn more about Coalition’s position on AI, plus answers to the questions we hear most.
Active Insurance is Built to Dominate the AI-Driven Risk Landscape
AI advancements are reshaping cyber insurance coverage
Deepfakes are making cyber scams harder to detect
Still have questions about AI coverage? Get in touch with one of our experts.
How Does Coalition’s Active Insurance proactively address AI risk in its policy language?
Coalition explicitly defines how existing coverage responds to AI-driven threats, rather than leaving it open to interpretation. In our flagship Active Cyber Policy, we expanded key definitions to include AI-specific events, so businesses don't have to worry whether an incident qualifies for coverage. Our position is written into the policy.
What's the difference between "silent" and "affirmative" AI coverage?
A silent policy says nothing about AI, leaving policy language open to interpretation and legal disputes. That legal uncertainty comes at the worst possible time. An affirmative policy explicitly states how coverage responds to AI-driven threats. The difference is peace of mind before an incident, not a legal battle after one.
Why does the Deepfake Response endorsement exist if the base policy already covers AI risks?
The base policy covers the financial losses from a deepfake-driven fraud event. But we observed deepfakes being used to damage reputations, not just steal money, and reimbursement alone doesn't fix that. The Deepfake Response endorsement adds a new triggering event and gives policyholders immediate access to forensic analysis, legal takedown support, and crisis communications expertise. It fills a gap that standard coverage was never designed to address.
Are AI-caused security failures covered even if no human was directly involved?
Yes. Whether a failure originates with a human or an autonomous AI model, if it results in a covered loss, our policy is built to respond. An AI agent taking down a system is still a security failure, and it's covered as one.