Business · Companies · 5 hrs ago
Insurers split over coverage for artificial intelligence risks
Businesses are seeking insurance for risks linked to artificial intelligence, including rogue AI agents and automated system failures.
Insurers are divided over AI coverage: some specialist firms offer policies or add-ons, while many large carriers impose exclusions.
Chubb, Travelers and AIG have adopted wording that limits liability for damage arising from generative AI.
Standard policies may leave coverage gaps, so experts advise businesses to review their insurance.
Companies seeking specialist cover are expected to show strong security controls, human oversight and supply chain management.
Underwriters are scrutinizing AI oversight, including how businesses monitor AI applications and control unofficial use of AI.
Businesses are also advised to secure their infrastructure, data pipelines and third-party contracts against malicious attacks and system failures.
Insurance companies are divided over coverage for risks linked to artificial intelligence.
Some specialty firms offer policies or endorsements for risks such as rogue AI agents and model hallucinations.
Major insurers Chubb, Travelers and AIG have adopted language that limits liability for generative AI-related damages.
Standard cyber and errors and omissions policies may not cover emerging AI threats, leaving organizations with gaps.
Insurers seeking to provide specialized coverage expect companies to show strong security controls and human oversight.
- Who
- Insurers and enterprises seeking coverage for AI-related risks.
- What
- Insurers are split between offering specialized AI coverage and limiting liability through exclusions.
- When
- Not stated.
- Where
- Not stated.
- Why
- Enterprises seek protection from potential threats, including rogue AI agents and automated system failures.
Specialty insurers
Major insurers
Coverage
Specialty insurers
Some offer purpose-built policies or affirmative endorsements for AI risks.
Major insurers
Chubb, Travelers and AIG have adopted language limiting liability for generative AI-related damages.
This story does not have a timeline yet.
- Specialty coverage
- Policies or endorsements address rogue AI agents and model hallucinations
- Major insurers
- Chubb, Travelers and AIG
- Policy language
- Verisk/ISO endorsement language limits liability for generative AI damages
- Potential coverage gap
- Standard cyber or errors and omissions policies may not cover emerging AI threats
- Expected safeguards
- Guardrails, human oversight and supply chain management