Coalition Creates Cyber Coverage for Manufacturers

PRODUCT: Coalition for Manufacturers

COMPANIES: Coalition

BEST RATING: Coalition offers insurance products with the financial security of Swiss Re Corporate Solutions and Argo Pro US, which hold A+ (Superior) and A (Excellent) ratings, respectively.

AVAILABILITY: Coverage is available through Coalition-appointed agents and brokers or to all Big “I” members through Big “I” Markets.

FOCUS: Based on the number of reported attacks, manufacturing is the second-most targeted industry for cyberattacks, according to a recent report from the U.S. Department of Homeland Security.

While breaches at well-known companies dominate the headlines, small to midsize businesses face the largest risk because the cost of a cyberattack can put a company out of business. As many as 60% of small and midsize businesses that are hacked go out of business within six months, according to the National Cyber Security Alliance.

“Now more than ever, manufacturing firms need protection to help them recover after a cyber incident,” says Joshua Motta, co-founder & CEO of Coalition.

Coalition is a leading cyber insurance provider for small and midsize businesses, and the “only insurance provider to also directly offer free cybersecurity tools and services to help organizations prevent, mitigate and recover from cyber incidents,” Motta adds. “Our comprehensive solution helps companies improve their cybersecurity and mitigate incidents when they occur, as well as recover financially in the aftermath.”

COVERAGE DETAILS: Coalition for Manufacturers insures manufacturers against security failures and data breaches. Coalition is the first to offer a policy that fully encompasses the physical, technological and financial damages—including bodily harm, property damage and pollution—that manufacturers may face as the result of a cyber incident or technology failure.

Coverage highlights include:

• Property damage, bodily harm and pollution resulting from a security failure.
• Supply chain interruption from cyberattacks against the insured or its suppliers, including coverage for lost income.
• Invoice manipulation that results in payments being misdirected or fraudulently directed.
• Technology disruption that affects operational and industrial controls, hardware and software.
• Wire fraud losses from payment or delivery of money or securities.
• Costs to replace computer systems, including industrial control systems, damaged in a cyberattack.

UNDERWRITING: Coverage is available through a simple online application process consisting of six questions. With this information, Coalition can automatically extrapolate thousands of additional data points to assess the cyber risk faced by the prospective insured. Organizations with an above-average security posture may be eligible for premium discounts and coverage enhancements.

Organizations determined to be at a higher risk of loss may be rendered ineligible until the identified risk conditions are remedied. After completing the application, firms are also eligible to receive Coalition’s cyber risk assessment at no additional cost.

MINIMUM PREMIUM: N/A.

TARGET: Small to midsize manufacturers and industrial firms with gross profits up to $250 million.

COVERAGE TERRITORY: Worldwide.

COVERAGE AVAILABILITY: Non-admitted coverage is available in all 50 U.S. states. Admitted coverage is available in selected states.

CONTACT: Christina Svenson, associate account executive, Sutherlandgold Group; 415-275-6238.

Will Jones is IA assistant editor.