Coalition adds AI affirmative endorsement

Cyber managing general agent Coalition Inc. Tuesday said it has added an artificial intelligence affirmative endorsement to clarify what is covered by its U.S. surplus and Canada cyber insurance policies.

The endorsement expands the definition of a security failure or data breach to include an artificial intelligence security event in which artificial intelligence technology caused a failure of computer systems’ security, Coalition said in a statement.

The endorsement language also expands the trigger for a funds transfer fraud event to include fraudulent instruction transmitted through the use of deepfakes or any other artificial intelligence technology.

Coalition’s AI endorsement can now be added to any U.S. surplus and Canada cyber insurance policies, the statement said.

Shawn Ram, Coalition’s head of insurance, said the endorsement provides coverage clarity as to how incidents are covered when AI is involved.