As AI Risks Grow, Insurers Split on Covering the Damage
Dark Reading, Thursday, October 22nd, 2026
Specialty carriers now sell AI coverage while major insurers add AI exclusions, so firms should review policies before year-end renewals.
Some insurers, including Armilla, Coalition, Cowbell, Munich Re and Beazley, offer AI-specific endorsements or policies, while carriers such as Chubb, Travelers and AIG are adopting Verisk/ISO exclusions for generative AI in general liability policies.
Many enterprises wrongly assume existing cyber or liability policies cover AI losses.
The article lists steps to qualify for coverage: review current policies, assess guardrails for agent attacks, check supply-chain contracts, give AI apps least privilege, and monitor agents like service accounts.
Underwriters assess controls holistically, and buyers should look for explicit wording on model outputs, non-malicious failures and bias exclusions.