Insurance
Home›Insurance›Industry & Deals›CFC adds affirmative AI coverage to its intellectual p…
CFC adds affirmative AI coverage to its intellectual property policy
The insurer says the update covers AI-related IP claims where existing policy requirements are met, including exposures tied to training data, algorithms, and outputs.
CFC has launched affirmative AI coverage within its intellectual property policy, giving explicit confirmation that IP claims involving AI can remain covered when they otherwise satisfy the policy's existing coverage requirements, Insurance Business reports.
The insurer said the updated wording is meant to remove ambiguity without changing the underlying scope, and it is designed to address potential AI lifecycle exposures, from training data and algorithms to the content and other outputs an AI system generates.
CFC also linked the update to a shifting risk landscape in which alleged infringement responsibility may fall on businesses deploying or using an AI system rather than only on technology providers, a distinction it said matters given the unsettled legal treatment of AI-related IP questions across jurisdictions.
The move completes a commitment CFC made in June 2026 to embed affirmative AI coverage across seven core products, including intellectual property, with CFC describing AI as “an accelerant of existing risk” rather than a wholly new category that requires separate products.