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Sep 12
Coalition Adds Four Surplus Lines Enhancements

​Multi-factor authentication (MFA) can block up to 99.9% of automated cyberattacks, according to Microsoft. Coalition is the first cyber insurer to incentivize this essential security practice. Effective Oct. 1, 2019, for all surplus lines policies in-force, Coalition will automatically add the MFA retention reduction endorsement.

If the policyholder has MFA enabled and requires MFA on business emails, but then suffers from a funds transfer f​raud, security failure or data breach event due to a business email compromise, this non-premium bearing endorsement rewards policyholders with a 50% reduction in retention up to $10,000.

Implementing MFA is easy and free. To learn how, register for one of two upcoming 45-minute webinars to take place Sept. 18 and Sept. 25.  Both webinars will start at 2:00 p.m. ET. To learn more about MFA visit the Coalition website.

In addition to the MFA retention reduction endorsement, Coalition also began adding the following three new enhancement endorsements to all Surplus Lines quotes created Sept. 9 or later:

  • Your obligations as an insured. The provisions for the discovery of a claim has increased from the last 30 days of the policy period to the last 60 days. Also, the window to provide written notice of claim or incident discovered in the last 60 days of the policy period is extended from 60 to 90 days after the end of the policy period.
  • Duty to cooperate. This endorsement removes the requirement for the insured to promptly address any computer system vulnerabilities that a senior executive becomes aware of during the policy period. The endorsement also removes the insured's obligation to make every effort not to divulge they have cyber extortion coverage without securing prior consent.
  • Invoice manipulation. If the insured suffers a security failure and, as a result, a third party pays a fraudulent invoice, this endorsement provides coverage for the insured's inability to collect payment for any form of good, product or service provided to a customer.

Agents can generate an alternative quote to include the enhancements with the “Create A New Option" button. These endorsements are not currently available in the admitted policy.

Surplus Lines Premium Bearing Endorsement Policy Fees

If during the policy period, more than two premium-bearing endorsements are processed, a $50 policy fee will apply to the third premium-bearing endorsement and each premium bearing endorsement thereafter, in certain states. Coalition does not add taxes or fees to premium-bearing endorsements.

Log in to Big “I" Markets and review the Cyber Insurance - Coalition Underwriting & Coverage page for applicable taxes and fees. Reach out to your dedicated Cyber Insurance Program Manager, Carla McGee, at 703-706-5495 with any questions.   


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Alexandria VA 22314
​phone: 800.221.7917
fax: 703.683.7556
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