Introduction: Insurance Catches Up to AI # The insurance industry has a problem: AI risks are growing faster than the industry’s ability to underwrite them. Claims are emerging across every line of business, from professional liability to cyber to general liability. Exclusions are proliferating. Coverage disputes are multiplying. And the market is only beginning to develop AI-specific products.
An Emerging Crisis # Professional liability insurance makes modern professional practice possible. Doctors, lawyers, engineers, and accountants can take on complex work because insurance spreads the risk of error across the profession. The insurance industry has spent decades developing actuarial models to price this risk accurately.
Key Takeaways Most professionals don’t know if their malpractice insurance covers AI-related claims, and increasingly, it doesn’t Major carriers (AIG, Berkley, Hamilton) are actively rolling out AI exclusions Verisk’s 2026 standardized exclusions could reshape market-wide coverage overnight New AI-specific policies are emerging (like Armilla’s Lloyd’s-backed coverage), but adoption is limited Action required: Ask your carrier directly about AI coverage before renewal, don’t assume The Growing AI Coverage Gap # Professional liability insurance was designed for a world where humans made decisions and mistakes. As AI tools increasingly participate in professional services, from legal research to medical diagnosis to financial advice, a dangerous gap is emerging between the risks professionals face and the coverage they assume they have.