Coalition, an Active Insurance provider, has introduced Active Privacy Protection, a new suite of product enhancements, coverage benefits, and industry research designed to apply its approach to cyber risk management to privacy. This offering is intended to help businesses prevent digital privacy risks before they lead to incidents.
With Active Privacy Protection, policyholders and brokers can access Privacy Risk insights within Coalition’s Cyber Risk Assessments. These customized insights identify potential privacy exposures on business websites, including high-risk tracking technologies, absent consent mechanisms, and possible gaps in privacy policies. These insights are also available through Coalition Control, the company’s cyber risk management platform, offering a comprehensive view of both cyber and privacy risk postures.
Tiago Henriques, Chief Underwriting Officer at Coalition, stated, “Coalition’s Active Insurance has already demonstrated that complete cyber protection comes not only from financially covering losses, but also from helping policyholders prevent them in the first place. Now, we’re applying that same innovative approach to privacy risks. By scanning websites for potential privacy exposures, surfacing insights to brokers and policyholders, and proactively alerting them to new litigation trends, we’re helping policyholders address privacy issues before they could become lawsuits.”
Additionally, Coalition’s Active Cyber Policy includes an expanded definition of privacy liability, and its Enhanced Privacy Liability Endorsement provides wrongful collection coverage. This protection is backed by data-driven underwriting.
Alongside the new offering, Coalition released “The State of Web Privacy” report, described as the cyber insurance industry’s first analysis of wrongful collection litigation. Daniel Woods, Principal Researcher at Coalition, commented, “Privacy litigation risk has grown substantially and continues to evolve, much like cyber risk. For businesses, especially small and midsize organizations, keeping track of complex privacy laws is a significant challenge. Our State of Web Privacy report, also released today, is the cyber insurance industry’s first comprehensive analysis of wrongful collection litigation. We drew from thousands of real business websites, hundreds of claims, and our unique insights from proprietary scanning technology to better understand which businesses are targeted with lawsuits, which technologies are triggering claims, and why decades-old laws are fueling more litigation than modern privacy regulations.”
Key findings from the report include that 77% of wrongful collection claims originated from website tracking. Nearly 60% of web privacy claims were reported by businesses with less than $100 million in revenue. The report also found that four law firms were responsible for 72% of all web privacy claims against businesses, often using templated demand letters. Furthermore, nearly three-fourths of web privacy lawsuits cited the 1967 California Invasion of Privacy Act, with few citing modern privacy laws. Analytics technologies were involved in 73% of web privacy claims.
Coalition describes itself as the world’s first Active Insurance provider, aiming to prevent digital risk by combining comprehensive insurance coverage with cybersecurity tools. The company offers Active Insurance products to businesses in the United States, the United Kingdom, Canada, Australia, Germany, Denmark, Sweden, and France. Policyholders can receive automated cyber alerts and access expert advice and global third-party risk management tools through Coalition Control®. In the U.
S., insurance products are offered by Coalition Insurance Solutions Inc. (CIS), a licensed insurance producer and surplus lines broker. The wrongful collection coverage under the Active Cyber Policy is available on a non-admitted basis and in the U.
S. only.
