The article also explores the potential coverage of existing insurance policies for AI risks. Cyber insurance policies may cover first-party losses and third-party liabilities arising from cyber incidents, while Technology Errors and Omissions Insurance policies may cover third-party claims alleging wrongful acts, errors, or omissions in the performance of technology services. Commercial general liability insurance policies generally cover third-party claims alleging bodily injury or property damage. However, there may be a potential gap in coverage for companies that sell AI-powered software products or services that lead to bodily injury or property damage claims. The future of insurance for AI risks is uncertain, with insurers potentially adding endorsements or exclusions that expressly address AI-related risks.
Key takeaways:
- The first wave of AI-related lawsuits primarily alleged invasion of privacy, copyright infringement, and defamation claims, with the next wave expected to involve different risks such as cyberattacks, privacy litigation and regulatory enforcement actions.
- Existing insurance policies, including Cyber Insurance, Technology Errors and Omissions Insurance, and Commercial General Liability Insurance, may provide coverage for many of the risks posed by AI, but the specific coverage varies.
- There may be potential gaps in coverage for companies that sell AI-powered software products or services that lead to bodily injury or property damage claims.
- It is too early to predict how insurers will respond to the new opportunities and risks posed by AI, but policyholders should review their existing insurance policies to determine whether they have adequate insurance coverage for emerging AI risks.