What Is AI Insurance?

AI Insurance — insurance coverage addressing losses and liabilities arising from the use, development, or failure of AI systems — including dedicated AI liability policies and AI-specific exclusions or endorsements within existing cyber, technology, or general-liability cover.

As AI is embedded across operations, insurers have moved to make AI risk explicit rather than "silent": through 2025–2026, standardised generative-AI exclusions (such as the ISO/Verisk endorsements effective January 2026) began removing AI-related claims from some general-liability policies, while a small specialist market — including Lloyd's coverholders — emerged offering affirmative cover for harms such as hallucinations, model drift, and discrimination. For governance teams the practical question at renewal is whether your policies still respond to AI-related claims, and insurance is increasingly a lever that rewards demonstrable AI assurance. (Market terms move quickly; verify current cover with your broker.)

Source: Insurance-market practice; Swiss Re Institute; ISO/Verisk generative-AI exclusion endorsements