Insurers Split on Coverage for AI-Related Risks
Summary
Some insurers now offer AI-specific coverage, while others exclude risks involving generative AI and autonomous systems. The article advises enterprises to review policy language and strengthen AI controls, including permissions, monitoring and supply-chain security.
Key points
- Specialty providers offer AI-related coverage through endorsements, technology E&O policies or standalone policies.
- Several large carriers are adopting Verisk/ISO exclusions for certain generative-AI-related bodily injury, property damage, and personal or advertising injury claims.
- Existing cyber and liability policies may not clearly cover AI-related losses; the article recommends reviewing exclusions and policy wording.
- Underwriters assess controls such as MFA, backups, network protection, human review and AI guardrails.
- Recommended safeguards include limiting AI applications to necessary system rights and credentials, and monitoring them rather than leaving them unattended.
- The article highlights risks from unsupervised employee use of AI and from vulnerabilities across extended supply chains.
Article Details
- Event Type
- Insurance-market changes: specialty insurers are offering AI-specific coverage while some large carriers are restricting or excluding AI-related risks from commercial general liability policies.
- Impact
- Enterprises may have coverage gaps for losses involving rogue AI agents, unauthorized disclosures, model outputs, or AI-related business interruptions. Existing cyber and liability policies may not cover these risks, and some exclusions remove coverage for specified harms arising from generative AI.
People
Andrew CorrellHead of underwriting for Armilla; comments on AI coverage and the controls underwriters assess.Craig LintonAI and Emerging Risk Strategy Lead at Beazley; discusses AI coverage, including voluntary shutdown coverage.Jack KudaleCo-founder and CEO of Cowbell; discusses policy wording and enterprise risks involving AI.
Vendors
AIGand personal and advertising injury arising from generative AI. Chubb, Travelers, Berkshire Hathaway, AIG and W.R. Berkey are among those adopting this endorsement, according to IB .Armillasell purpose-built policies, affirmative endorsements, and specialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Beazleyspecialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Berkshire Hathawayproperty damage, and personal and advertising injury arising from generative AI. Chubb, Travelers, Berkshire Hathaway, AIG and W.R. Berkey are among those adopting this endorsement, according to IB .Chubbfor bodily injury, property damage, and personal and advertising injury arising from generative AI. Chubb, Travelers, Berkshire Hathaway, AIG and W.R. Berkey are among those adopting this endorsement, accordingCoalitionpolicies, affirmative endorsements, and specialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Corgi Insuranceaffirmative endorsements, and specialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Cowbellendorsements, and specialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Munich Reand specialized coverage targeting AI risks are Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re, and Beazley.Travelersbodily injury, property damage, and personal and advertising injury arising from generative AI. Chubb, Travelers, Berkshire Hathaway, AIG and W.R. Berkey are among those adopting this endorsement, according to IB .W.R. Berkeyand advertising injury arising from generative AI. Chubb, Travelers, Berkshire Hathaway, AIG and W.R. Berkey are among those adopting this endorsement, according to IB .