The growing sophistication of synthetic media, especially deepfake audio and video, presents new security challenges for businesses worldwide. As criminals leverage these digital fabrications to infiltrate organizations or tarnish reputations, defense solutions are shifting. Many experts have anticipated insurance and legal compliance sectors would eventually address the risks posed by AI-powered impersonation and fraud. Coalition, a cybersecurity insurance provider, now steps into this space by offering a policy designed to offset the harm that deepfake-related incidents cause to organizations. This development comes as concerns rise over threats that use advanced technology to exploit enterprise vulnerabilities and target individuals for financial or reputational gain.
Earlier coverage of this topic typically focused on policy gaps and the lack of targeted insurance responses for synthetic media threats, with much commentary expressing doubt about whether insurance providers would act before deepfakes saw broader exploitation. Some past incidents documented deepfake-enabled fraud schemes primarily at very large organizations, whereas Coalition’s move signals recognition that mid-sized businesses may soon face similar risks. This step contrasts with prior industry hesitancy, as insurers now acknowledge the changing landscape and its demands, including response services for takedown and crisis management.
What Does Coalition’s Deepfake Insurance Cover?
Coalition’s newly announced policy broadens its cybersecurity coverage to include incidents stemming from deepfakes, whether they result in financial loss or reputational harm. The policy provides organizations with access to response services such as forensic analysis, legal action for online takedown of fake content, and crisis communications support. This addition aims to help clients handle the disruption and fallout that can follow synthetic media attacks.
Are Deepfake Claims Common in Cyber Insurance?
At present, Coalition identifies only a modest number of deepfake-related claims within its portfolio—according to the company, the vast majority of cyber insurance claims still relate to techniques like phishing, exploited VPNs, and social engineering rather than high-tech forgeries. Incident response lead Shelly Ma explained that cybercriminals often continue using simpler, cost-effective tactics because these approaches still prove effective against most targets.
Will Deepfake Threats Increase for Businesses Soon?
Experts suggest a shift may be imminent as AI grows more capable and affordable, widening the pool of threat actors able to deploy deepfakes at scale. Ma pointed out that the resources needed to create convincing AI-generated impersonations have decreased, raising concerns about future attack levels against small and mid-sized firms. Echoing this, identity provider ID.me recently warned that advances in deepfake and AI technology are lowering barriers for fraudsters and have begun to affect identity systems in both the public and private sectors.
“These attacks, they shortcut skepticism, and they can bypass even very well-trained employees,” said Shelly Ma, incident response lead at Coalition.
Ma also elaborated:
“In the handful of cases where we have spotted deepfakes, we’ve seen attackers mostly use AI-generated voice or text to impersonate trusted contacts.”
Analysis of current tactics indicates that attackers increasingly rely on tailored, automated impersonations rather than traditional manual reconnaissance. The insurance industry’s adaptation, demonstrated by Coalition’s coverage expansion, signals a move toward protecting organizations from the evolving risks associated with synthetic media. Businesses are encouraged to not only implement robust technical defenses but also stay informed about available risk transfer mechanisms to manage potential losses.
While synthetic media threats have so far been most relevant to larger enterprises, greater availability of AI tools is shifting the landscape for smaller organizations as well. Understanding exclusion clauses, response services, and the real capabilities and limitations of such cyber policies is critical for businesses evaluating their protection strategies. Organizations may also benefit from training staff to identify not just basic phishing, but subtler forms of AI-driven impersonation—an approach that will become more relevant as deepfake incidents grow in frequency. Those considering insurance should scrutinize policy language to ensure comprehensive coverage, especially as deepfake and AI-based fraud become more widespread and sophisticated.
