Every business relies on the internet these days. Recently, the attack on the Colonial pipeline and major food supply chains have brought home the need for cyber security. Ransomware attacks are on the rise due to a few factors, such as the difficulty in tracing cryptocurrency and the number of people now working from home.
Sensitive customer information is stored on websites or in the cloud, hackers hold your data hostage until you pay up (ransomware) and malicious malware can infect your bottom line. Every company could use cyber security protection, and Coalition is one company that offers this type of insurance.
Coalition was founded by Joshua Motta and John Herring, two former cyber security experts who paired up to democratize cyber security and mitigate potential risks. They’re a young company, founded in 2017. They currently have more than 41,000 customers and have insured them for more than $12 billion (in June 2021). Thanks to the latest round of funding, they are valued at more than $1.75 billion and only expected to grow.
What Types of Cyber Protection does Coalition Insurance Offer?
Coalition offers several cyber protections in their cyber security insurance policy, including:
- Credential monitoring (scanning for leaked or compromised passwords)
- Security awareness training (according to Coalition, 90% of security incidents are caused by human error)
- Endpoint detection and response (malware detection software)
- Patch manager (scanning systems for out-of-date software)
- Threat monitor
- DDoS mitigation (prevents denial of service attacks)
- HackerOne response team (employs hackers to find your weak spots)
- Cyber risk assessment
- 24/7/365 availability
One thing that Coalition provides that some other cyber security insurance doesn’t is both first- and third-party coverage. Third party coverage is the damage resulting to third parties due to a data breach. If your data base is hacked and as a result, some customers have their identities stolen and they lose thousands of dollars, Coalition will cover that.
There are a few other things that Coalition provides that are unique. They cover computer replacement, funds transfer fraud, and coverage for all your social media accounts.
Recently, Coalition partnered with Insureon to provide cyber security insurance to small businesses. After all, small businesses can easily fall victim to a cyber-attack or a data breach, and the resulting fallout could be more devastating. More than 43% of all cyber-attacks target small businesses, according to Coalition.
Tech E&O Insurance Policy: How does It Work?
They also offer Tech E&O insurance, which is insurance for a company if technology should fail. It’s like product liability insurance, only for tech companies. For example, if your software miscalculates something and as a result, customers using the software lose money, they can sue you. Coalition will cover the cost of lawsuits and the legal liability should this occur. Tech companies should consider both Tech E&O insurance and cyber security insurance.
With “software eating the world” trend in global economy and business, each and every company has become a tech company if they want to compete effectively, Tech E&O insurance will become a necessary insurance policy for any company. Coalition is one of the pioneers to offer such an insurance policy.
>>MORE: Corvus Cyber Insurance Review
Customer Satisfaction Score of Coalition Cyber Insurance
Coalition insurance earns a perfect five out of five stars overall on Trustpilot. Policy holders praise how responsive Coalition was during what was undoubtedly a very stressful time. Most of the reviews are from people who contacted Coalition after a cyber security attack has already occurred, and they seem very pleased with how well Coalition contained it
Financial Strength Score of Coalition Cyber Insurance
Coalition is backed by Swiss Re, Lloyd’s of London, and Argo. All of these companies are rated at least an A- by A.M. Best. This backing should ensure that Coalition has the resources it needs to pay claims.
Digital Experience Score of Coalition Cyber Insurance
You’ll need to go through a broker to get a quote, but once you have a broker, they can recommend and issue policies in minutes. Because you’ll need to contact a broker to get a quote, we were unable to get one. There isn’t any information about pricing on the website at all.
How Much does Cyber Insurance Cost?
According to Embroker, the average cost of cyber security insurance is about $1,500 a year for a $1 million in coverage, with a $10,000 deductible. Things affecting how much you’ll pay include:
- Size of your company
- What industry you’re in (some industries are considered higher risk)
- Amount of data you store/handle
- Sensitivity of data
- Annual revenue
- Strength of security measures
- Policy terms
There’s a nifty little graphic on their website, where you can predict how much a cyber incident will cost your company. There are two sliders, one for annual revenue and one for the number of users you store data for. The range for annual revenue ranges from less than $1 million to over $250 million, and the number of users ranges from less than 100,000 to over a million. It looks like this:
The least amount of money a cyber-attack will cost you is $115,000.
It’s true that the internet is not terribly secure and that ransomware and other attacks are on the rise. If you own and run a small or medium sized business, it would be worth getting a quote from a broker for Coalition, based on current customer reviews. Shop around and compare a few different companies. See what they offer and how much they charge, then make your decision.