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Insurers launch standalone AI liability products as coverage evolves
Armilla AI launched an affirmative AI liability policy in April 2025 with up to $25 million in available limits by January 2026, and Munich Re’s aiSure suite is being paired with additional capacity.
Dedicated AI insurance is gaining traction, according to an Insurance Business LinkedIn poll where respondents were split between expecting AI coverage to become a major standalone commercial line and handling AI exposure through existing policies.
Insurance Business reports that Lloyd’s coverholder Armilla AI launched a standalone affirmative AI liability policy in April 2025, later increasing available limits to US$25 million in January 2026. The coverage is designed for companies developing or deploying AI, and it can respond to model errors, inaccurate outputs and agent actions.
The outlet also details product combinations and reinsurance support, including Armilla and Chaucer launching Vanguard AI in February, which pairs Chaucer’s cyber and technology E&O coverage with Armilla’s standalone AI liability policy. Munich Re has been underwriting AI-specific risks through aiSure, and Mosaic Insurance partnered with Munich Re in February to offer aiSure with up to US$15 million in initial capacity.