What Is Coalition Insurance?

Coalition combines commercial insurance offerings with cyber risk-management services. In the United States, Coalition Insurance Solutions, Inc. (CIS) is the disclosed insurance producer and surplus lines broker; the issuing insurer is responsible for policy obligations. ^2,7

Coalition markets Tech E&O to businesses selling technology products or services, including exposures from software downtime and failures in delivery. ¹

For a founder or finance lead, the useful starting point is the work your customer contracts promise: ask how the proposed policy addresses a failed delivery, an outage and a customer demand for compensation. A product label alone does not answer those questions. ¹

Pros and Cons

Pros

• A combined quote for technology and cyber exposures.

  Coalition offers technology errors and omissions (E&O) coverage for covered third-party financial losses arising from errors, omissions or negligence in technology products or services, combined with cyber insurance. ¹

  Ask for both parts to be mapped to your customer contract requirements.

• Tools for acting on security findings.

  Coalition describes Control policyholder features at no additional cost, including attack-surface monitoring, vendor-risk monitoring, vulnerability alerts and guidance. Login Security requires connecting a Microsoft or Google environment. Additional security products are promoted separately. ⁸

  Assign someone on your team to evaluate alerts and carry out remediation.

• A documented path above the primary policy.

  Coalition lists U.S. surplus cyber excess coverage, with combined Tech E&O and MPL excess options. This is additional coverage above an underlying policy, not evidence of a general commercial umbrella offering. It requires underlying policy details and loss runs; the primary insurer leads claims response. ¹⁴

  This creates a separate quote question when a customer asks for more limit than your primary policy provides.

Cons

• Product routes require attention.

  Coalition’s help center states that admitted and surplus cyber policies are offered in all 50 states and D.C., including California. Its product comparison lists Tech E&O and MPL under surplus coverage. This documents a California cyber placement route, but does not establish approval or the exact Tech E&O form for a particular applicant. ^10,11

  Do not assume an admitted cyber quote includes the same technology coverage as a surplus-lines quote.

• The final cost needs a quote.

  The reviewed compensation disclosures do not state the commission percentage, broker fee or total premium for a particular startup quote. Obtain an itemized cost and compensation explanation from the placing broker. ^4,16

  A comparison should separate premium, taxes, fees and optional services.

• A renewal may still need active work.

  Coalition says cyber renewals begin 90 days before expiration and follow Automatic, Express or Standard paths based on the account. Express renewals require responses; Standard renewals require a bind order and updated signed application, with additional underwriting conditions for some accounts. Automatic renewal does not guarantee an unchanged premium. ¹⁵

  Keep the broker’s request on your renewal calendar even if a previous year required little input.

How It Works

Coalition directs buyers to an appointed insurance broker and offers help finding access if their broker does not offer Coalition. It describes underwriting that considers industry, finances, operations and security posture. ¹³

Coalition’s broker instructions describe adding Tech E&O during the cyber quote process, supplying a product or service description and answering contract-related questions. Some quotes require review before a price is released. ¹²

Prepare a clear account of what you build, host, integrate or advise on, and which obligations you accept in contracts. Ask the broker to identify any outstanding conditions before treating the quote as ready to bind. ¹²

Coalition lists CIS’s California producer and surplus lines license as 0L76155. This is a company disclosure; current license status has not been independently checked with the California regulator. ²

Coalition identifies Coalition Insurance Company (NAIC 29530) for admitted cyber and describes CIS as acting for unaffiliated insurers on non-admitted placements. The reviewed sources do not assign a single insurer to every California Tech E&O quote; confirm the named carrier on the quote and policy. ^3,2

Have the placing broker identify the producer, insurer and policy form together. That is more useful than relying on the brand name at the top of a proposal.

Coverage and Availability

Coalition markets cyber insurance with breach-response expenses, cyber-extortion and business-interruption coverage, subject to the issued policy. ⁷

Miscellaneous Professional Liability covers professional-service errors and omissions and can be added to certain Coalition cyber policies. Its product page describes defense costs, settlements and judgments; eligibility and wording need confirmation. ⁶

For a business that mixes software with consulting, ask which activities belong in the technology coverage and which belong in professional-services coverage. Have the answer reflected in the quote’s description of insured services.

Coalition’s Executive Risks suite lists directors and officers liability, employment practices liability, fiduciary liability and crime insurance. These address management decisions, employment disputes, benefit-plan management and criminal losses respectively. ⁵

Coalition states that Executive Risks is available to private and nonprofit U.S. organizations in all states and Washington, D.C., with up to $500 million in assets, 1,000 employees and $500 million in plan assets, subject to limitations. ⁵

A growing company should confirm eligibility after changes in ownership, employee count or benefit plans, rather than carrying forward assumptions from an earlier quote.

Coalition maps AI-related losses to its Active Cyber Policy’s existing insuring agreements, including media liability and Tech E&O for eligible businesses. It also markets a Deepfake Response endorsement. This does not establish unrestricted AI-product liability or a warranty of model performance. ¹⁸

If AI is part of your product, describe its actual function and ask about erroneous outputs, performance degradation, data use and intellectual-property allegations. Request the relevant wording instead of accepting a general statement that AI is covered. ¹⁸

Coalition separately markets Active Cyber Insurance for Enterprises with Allianz. It describes a large-market product subject to minimum annual revenue and other underwriting criteria; startup access should not be inferred from this offering. ¹⁷

Service and Compensation

Coalition’s legal page identifies Coalition Incident Response, Inc., doing business as Coalition Security, or independent third parties as security-service providers. Coalition Security does not provide insurance. ²

Ask which monitoring and response services are included in your proposed arrangement, which need activation and which involve a separate contract.

Coalition describes in-house cyber claims triage and assistance attempting to recover stolen funds. Its Tech E&O page says the same claims team manages cyber and Tech E&O claims. These service descriptions do not establish response quality or payment of a particular loss. ^9,1

Confirm whom to contact for an incident, when formal notice is required and whose approval is needed before engaging outside counsel or response vendors. Early assistance and an accepted insurance claim are different steps. ⁹

Coalition says independent producers typically receive commissions based on premium for new and renewed policies. Contingent commissions, placement incentives and compensation for certain cybersecurity sales may also apply. ⁴

Coalition says it retains part of earned premiums to fund operations and broker commissions and receives additional carrier payments based on the portfolio’s annual loss ratio. ¹⁶

Ask the broker to explain the compensation attached to your placement and any recommended security purchase. A published commission structure does not tell you the amount in your proposal. ⁴

What to Confirm in a Quote

Bring the proposed wording and your largest customer contracts to the discussion:

• California placement: Which insurer issues each coverage, is the placement admitted or surplus lines, and which Tech E&O form and endorsements apply? ¹¹
• Your actual services: Are software, implementation, consulting and AI activities described accurately? How do contract liability, missed delivery and intellectual-property provisions affect the requested coverage? ^12 18
• Usable limits: Are cyber and E&O limits shared, how are defense costs treated, and what retentions, sublimits and reporting dates apply? If buying excess, how does it follow the underlying policy? ^1 14
• Operational ownership: Who receives security alerts, handles renewal requests and reports incidents? What services require a separate agreement or consent? ^8 15 9
• Total cost: What are the premium, taxes, broker fees, commissions and charges for additional security services? ⁴