AI Insurance Coverage

The insurance market is treating artificial intelligence as a distinct risk category, separate from conventional cyber or professional liability coverage. Insurers, brokers, and underwriters are now assessing AI-specific loss patterns—algorithmic bias, automated decision errors, model failures, and fragmented accountability across the AI supply chain—rather than forcing AI exposures into existing policy frameworks. Underwriters are demanding stronger AI governance, documentation, monitoring protocols, human oversight mechanisms, and incident response plans before issuing coverage. Some carriers are adding AI exclusions, sublimits, and tailored policy language; others are developing affirmative AI-specific products.