As businesses race to adopt Artificial Intelligence, the insurance industry is navigating a fast-evolving and complex web of risks. From bodily injury to securities fraud, AI is triggering claims that span nearly every corner of liability coverage. In this post, insurance litigator Seth explores the fast-moving intersection of AI and insurance—and why companies need to start paying attention now.
With over two decades in insurance litigation, Seth notes that no other technology has introduced such a wide and unpredictable range of risks. And the response from insurers? It’s a mix of new exclusions, cautious underwriting, and emerging coverage options designed to tackle this frontier.
Key Takeaways
- AI-Driven Claims Are Already Here: Real-world lawsuits allege harms ranging from AI chatbots encouraging self-harm to discriminatory hiring bots and copyright misuse.
- Coverage Varies Widely: Claims are being made under general liability, D&O, E&O, media liability, and cyber-risk policies—sometimes successfully, sometimes not.
- Exclusions Are on the Rise: New policy language is carving out AI-related exposures, including broadly worded exclusions for generative AI content and AI-assisted decision-making.
- Some Insurers Are Leaning In: Select carriers are offering AI-specific E&O endorsements, including coverage for data misuse and “data poisoning” in machine learning.
- Risk Management Must Be Proactive: Companies should integrate legal and risk teams early, audit contracts with AI vendors, and stay informed on evolving governance frameworks like NIST and NYC’s Local Law 144.
Read the full article to better understand the shifting contours of insurance coverage in the age of AI—and what your company can do to manage these emerging risks.