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Digital health firms are buying broader insurance for AI-linked risks
A Beazley survey of 600 executives found that medical negligence is the top cause of loss in healthcare claims, while executives focus more on cyber and workforce competency.
Digital health companies are moving faster to integrate AI into care than the insurance market has yet developed clear coverage for, according to a 2026 Digital Health & Wellness report from Beazley.
The insurer said its healthcare claims book over the past decade ranks medical negligence as the most frequent and most severe cause of loss, with improper supervision second, even as executives’ biggest concerns center on cyberattacks and workforce competency.
Beazley described a “liability chain” in which one AI-assisted patient harm event can trigger claims across multiple lines at once, including medical professional liability, cyber, technology errors and omissions, and general liability. Marc Martin, product leader for digital healthcare at Beazley, said the interconnected nature of AI-enabled solutions means claims could target tech companies, physicians, and clients if an injury occurs.
To address that multi-line exposure, Beazley reported an increase in buyers choosing a single tailored multi-risk policy, rising from 40% in 2024 to 53% in 2026. The report also pointed to unresolved liability questions in the US, alongside overlapping HIPAA and state privacy obligations, including California privacy laws, and said courts are still shaping how AI tools that transmit patient inputs to third parties are treated under consent requirements.