PRODUCT: Coalition for Healthcare

COMPANY: 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 appointed agents and brokers, including wholesalers, as well as to all Big “I” members through Big “I” Markets—no direct appointment required. Coverage is available on a surplus lines and admitted basis.

FOCUS: Last year, 15 million patient records were exposed due to health care breaches, according to the 2019 Breach Barometer Report from Protenus. But a whopping 70% of health care organizations do not carry standalone cyber insurance, according to a survey of security executives by Ovum for analytics firm FICO.

And health care is unique in that it is the only industry where a cyber threat is more likely to originate within the organization than outside of it. Over half of health care breaches begin internally, according to Verizon’s 2018 Data Breach Investigations Report.

To enable health care organizations to better protect themselves from these threats, Coalition recently launched a cyber policy that fully addresses the unique cyber risks health care organizations face before, during and after a breach. This policy covers fines for HIPAA violations, in-house breach response services, ransomware and other malware incidents, and restoration of digital assets such as patient information.

“Coalition’s consistent monitoring of network and information security condenses an organization’s response time significantly,” says Shawn Ram, Coalition’s head of insurance, who notes that Coalition is the only insurance provider to directly offer free cybersecurity tools and services to help organizations prevent, mitigate and recover from cyber incidents.

“Coalition believes that all businesses need a partner who can help them remain resilient in a world of dynamic and pervasive threats,” Ram adds. “Our in-house security team includes former veterans of the National Security Agency, Central Intelligence Agency and private security companies. Together with hand-picked partner firms, we stand ready to help our insureds quickly recover from a cyber incident.”

COVERAGE DETAILS: Coalition’s comprehensive offering provides coverage for healthcare organizations in the following areas:

• Cost to comply with an Office for Civil Rights-mandated security assessment and program, as a result of a security failure or data breach that violates HIPAA privacy and security rules.
• Restoration of digital assets, including sensitive patient information.
  Business interruption from cyberattacks against the insured or their suppliers.
• Funds transfer incurred from a security failure or social engineering attack.
• Costs to respond to an extortion incident, including money, securities and virtual currencies paid.
  Costs to replace computer systems and other technology damaged in a cyberattack.

UNDERWRITING: Coverage is available through a simple six-question online application process. Coalition built an unrivaled intelligence platform to underwrite risk based on the real-time indicators an attacker would use, and a real capability to assist during a claim. This information enables Coalition to automatically extrapolate thousands of additional data points to assess a prospect’s cyber exposure.

Organizations with an above-average security posture may be eligible for premium discounts and coverage enhancements. Conversely, organizations with a higher risk of loss may be ineligible until they remedy the identified risk conditions.

After completing an application, all firms are eligible to receive Coalition’s proprietary Cyber Risk Assessment at no additional cost.

MINIMUM PREMIUM: None.

TARGET: Small to midsize healthcare companies with gross revenues up to $250 million.

COVERAGE TERRITORY: All 50 U.S. states and Washington, D.C. Note: Coverage in the admitted market may not be available in all states.

CONTACT: Christina Svenson; 415-275-6238.

Jacquelyn Connelly is former IA senior editor.