Carriers Launch AI Insurance Amid Rising Liability Concerns
Major carriers create new insurance products in response to rising AI incidents.
Why it matters: These changes impact how legal teams manage tech liabilities, affecting risk and compliance strategies.
- Coalition and AXA XL offer generative AI endorsements.
- Relm Insurance launched NOVAAI and others in January 2025.
- Munich Re's aiSure™ covers AI performance risks.
- AIG and W. R. Berkley exclude AI risks from traditional policies.
As artificial intelligence (AI) becomes more prevalent, its associated risks have prompted insurers to develop specialized products. This development affects how legal teams manage liability and compliance in the tech sector.
In early 2024, Coalition and AXA XL began offering endorsements that address generative AI risks, covering data sabotage and compliance issues. This shift helps mitigate operational and legal disruptions.
Relm Insurance expanded its product line in January 2025 with policies like NOVAAI, PONTAAI, and RESCAAI. These policies target various AI-related liabilities, from operational to compliance challenges.
Munich Re offers aiSure™, which covers risks associated with AI performance, including operational failures.
In contrast, insurers such as AIG and W. R. Berkley now exclude AI-related risks from their standard corporate policies, leading companies to reconsider their insurance strategies to address these emerging risks.