Navigating Insurance Coverage Issues for AI‑Related Losses

The rapid adoption of AI is amplifying cybersecurity and other business risks while creating new ones. Although existing insurance policies are generally broad enough to cover many AI-related exposures, increased use is likely to drive higher claim frequency and severity, prompting insurers to tighten underwriting and, in some cases, introduce AI-specific exclusions. This article, distilling insights offered during a Barbri program featuring partners from Anderson Kill, Duane Morris and K&L Gates, examines key AI-related risk areas, the coverage available for such risks under legacy policies, potential AI policy exclusions and how organizations can assess their coverage. See our three-part series on using cyber insurance to mitigate risk: “Finding an Insurer and Navigating the Application Process” (Oct. 3, 2018); “Getting Savvy About Cost and Policy Terms” (Oct. 10, 2018); and “Policy Management and Breach Response” (Oct. 17, 2018).

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