Insurance
Home›Insurance›Industry & Deals›AI exposure still unclear in cyber coverage, WTW says
AI exposure still unclear in cyber coverage, WTW says
WTW’s Jennifer Wilson says the market is still relying on “silent” AI coverage, leaving insurers and insureds to litigate which policies respond to AI-related claims.
Retail brokers often place cyber accounts in the wholesale market when their in-house expertise runs short, but that handoff does not ensure consistent guidance on AI-related exposures or how policy wording is intended to address them, according to Insurance Business.
Jennifer Wilson, senior director of cyber at WTW, said expertise on AI coverage remains uneven across both retail and wholesale brokerages as insurers try to keep up with AI adoption. She noted some wholesalers negotiate broader language, while others believe existing definitions for technology products and services are enough, and still others argue cyber policies need affirmative language only for technology E&O, which she said is not accurate.
For technology-focused businesses, Wilson said AI-related claims can involve inaccurate outputs, product performance failures, privacy violations, intellectual property allegations, or security incidents. Depending on the circumstances and wording, those allegations could implicate cyber, technology E&O, media liability, or other lines.
Wilson added that the insurance market has not standardized widely available affirmative language for AI risks, meaning insurers and insureds currently rely on silent coverage in cyber and technology policies. Where policies neither clearly affirm nor exclude AI-related exposures, coverage may have to be tested against existing insuring agreements, definitions, and exclusions, and brokers seeking additional protection may need to negotiate amendments carrier by carrier, she said.