Insurers are introducing exclusions for artificial intelligence-related risks in corporate liability policies, creating a challenge for risk managers and boards. More than 60 property and casualty carrier groups have filed to adopt some form of AI exclusion, according to the Insurance Information Institute’s Michel Léonard.
The exclusions are particularly affecting management and professional liability lines, including directors and officers (D&O), errors and omissions (E&O), employment practices liability and fiduciary liability insurance. Potentially affected claims include AI-driven discrimination, intellectual property violations and property damage involving autonomous systems.
Cyber insurance remains comparatively stable, with some carriers continuing to cover AI-enabled threats such as deepfake fraud. Industry observers compare the development with cyber insurance’s evolution from silent coverage to a dedicated market. Standalone AI liability products are emerging, with available limits ranging from $2 million to $50 million. The shift highlights the need for AI governance, policy reviews and risk assessment before renewals.
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