Coalition Launches Active Privacy Protection for Wrongful Collection

Policyholders and brokers can now view Privacy Risk insights in Cyber Risk Assessments and Coalition Control® to better understand potential data privacy exposures

Company releases The State of Web Privacy report, the cyber insurance industry’s first comprehensive analysis of wrongful collection claims

San Francisco, CA (Nov. 5, 2025) — Coalition, the world’s first Active Insurance provider designed to prevent digital risk before it strikes, is pleased to introduce Active Privacy Protection, a comprehensive suite of product enhancements, coverage benefits, and industry-first research that applies Coalition’s revolutionary approach to cyber risk management to privacy.

Now, in addition to benefitting from existing wrongful collection coverage via Coalition’s Active Cyber Policy,^† policyholders and brokers can receive Privacy Risk insights within Coalition’s Cyber Risk Assessments. These customized insights reveal potential privacy exposures on businesses’ websites, including high-risk tracking technologies, missing consent mechanisms, and possible gaps in privacy policies. Privacy Risk insights are also available in Coalition’s cyber risk management platform, Coalition Control, providing a holistic picture of both cyber and privacy risk postures in a single place.

“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,” commented Tiago Henriques, Chief Underwriting Officer at Coalition. “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 flagship Active Cyber Policy includes an expanded definition of privacy liability, and its Enhanced Privacy Liability Endorsement provides market-leading wrongful collection coverage. With clear, affirmative protection backed by data-driven underwriting, policyholders and their brokers can feel more confident about coverage.

“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,” added Daniel Woods, Principal Researcher at Coalition. “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 State of Web Privacy report^‡ include:

• Web activity drives most claims: 77% of wrongful collection claims originated from website tracking, underscoring the critical importance of web privacy relative to other data uses.
• Most claims target smaller businesses: Nearly 60% of web privacy claims were reported by businesses with less than $100 million in revenue, dispelling the myth that only large enterprises face meaningful exposure.
• Plaintiffs’ attorneys, not regulators, drive losses: Four law firms were responsible for 72% of all web privacy claims against businesses, using templated demand letters to drive pre-litigation settlements at scale.
• Old laws fuel most new claims: For example, nearly three-fourths of web privacy lawsuits cited the 1967 California Invasion of Privacy Act, while just a handful of claims cited modern privacy laws.
• Analytics misuse is the top allegation: 73% of web privacy claims involved analytics technologies, underscoring how widely used tools like Google Analytics can increase litigation exposure.

Download the full report: The State of Web Privacy.

Learn more about Coalition’s Active Cyber Policy and comprehensive Active Privacy Protection.

Notes

^† This product is only available on a non-admitted basis; available in the U.S. only.

^‡ The State of Web Privacy report is provided for general informational and discussion purposes only. It is based on Coalition’s analysis of data privacy-related cyber insurance claims reported to Coalition Insurance Solutions, Inc., and the results of adjacent website security scans businesses sought in connection with Coalition’s cyber insurance policy application process. The analysis, conclusions, and opinions stated within the report are Coalition’s own. Coalition makes no claim that the findings are representative of all data privacy-related matters or to any unique situation. The data privacy landscape is rapidly evolving, and therefore, the report may not reflect the most current developments. The report is not intended to be a substitute for legal or professional advice, or a solution to any particular privacy issue. Coalition encourages readers to seek the advice of a qualified professional with any privacy-related questions or concerns they may have. Any action taken based upon the report is strictly at one’s own risk. Coalition and its affiliates will not be liable for any losses or damages in connection with the use of or reliance upon the report.

About Coalition

Coalition is the world’s first Active Insurance provider designed to help prevent digital risk before it strikes. By combining comprehensive insurance coverage and cybersecurity tools, Coalition helps businesses manage and mitigate potential cyberattacks. Leveraging its relationships with leading global insurers and capacity providers, including Coalition Insurance Company, Coalition 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, as well as global third-party risk management tools, through Coalition’s holistic cyber risk management platform, Coalition Control®. For more information, visit www.coalitioninc.com.

Insurance products are offered in the U.S. by Coalition Insurance Solutions Inc. (“CIS”), a licensed insurance producer and surplus lines broker with its principal place of business in San Francisco, CA (Cal. license #0L76155), acting on behalf of a number of unaffiliated insurance companies. Insurance products offered through CIS may not be available in all states. Complete license and carrier information is available here. CIS may receive compensation from an insurer or other intermediary in connection with the sale of insurance. All decisions regarding any insurance products referenced herein, including approval for coverage, premium, commission, and fees, will be made solely by the insurer underwriting the insurance under the insurer’s then-current criteria. All insurance products are governed by the terms, conditions, limitations, and exclusions set forth in the applicable insurance policy. Please see a copy of your policy for the full terms, conditions, and exclusions.

Insurance products are offered in Canada by Coalition Insurance Solutions Canada Inc. (“CIS Canada”) a licensed insurance producer in all Canadian provinces, with its principal place of business in Vancouver, British Columbia (Canada license #LIC-2020-0020925-R01) (in Quebec, Coalition Solutions d’Assurances Canada, with a principal place of business in Montreal, Quebec, licence no # 608005), acting on behalf of a number of unaffiliated insurance companies. Coverage obligations are the responsibility of the insurance carrier(s) named in the insurance policy. Insurance products offered through CIS Canada may not be available in all provinces. See licenses and disclaimers. CIS Canada receives commissions from insurers listed on each policy in connection with the sale of insurance to the policyholder. Coverage is subject to actual policy language.

Coalition is the marketing name for the global operations of affiliates of Coalition, Inc.

Copyright © 2025. All rights reserved. Coalition, Coalition Control, and the Coalition logo are trademarks of Coalition, Inc.

SOURCE: Coalition via Omnia Partners

Tags: claims, Coalition Inc., cyber risk, cyber security, industry first, InsurTech, InsurTech Spotlight, Privacy, Privacy Breach Protection, United States (USA)