{"id":238016,"date":"2026-05-01T16:05:00","date_gmt":"2026-05-01T20:05:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/05\/01\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/"},"modified":"2026-05-01T16:50:10","modified_gmt":"2026-05-01T20:50:10","slug":"big-insurance-backs-away-from-ai-risk-and-startups-rush-in","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/05\/01\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/","title":{"rendered":"Big Insurance Backs Away From AI Risk and Startups Rush In"},"content":{"rendered":"

Big Insurance Backs Away From AI Risk and Startups Rush In<\/a><\/p>\n

https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/<\/a><\/p>\n

Publish Date: 2026-05-01 16:05:00<\/a><\/p>\n

Source Domain: www.pymnts.com<\/a><\/p>\n

A company deploys an artificial intelligence (AI) agent. The agent makes a mistake. The insurance policy does not cover it.<\/p>\n

That outcome is no longer hypothetical. Major insurers are carving AI out of standard corporate coverage. State regulators are approving the requests and a new market is already forming to fill the gap.<\/p>\n

Carriers Signal They Cannot Price the Risk<\/strong><\/h2>\n

Berkshire Hathaway, Chubb and Travelers sought state regulatory approval to exclude AI-related damages from general liability policies. State regulators approved more than 80% of those requests, The Information reported. Florida, Connecticut and Maryland approved the highest number of requests. The exclusions began taking effect as early as January.<\/p>\n

The moves follow two new optional endorsements introduced by the Insurance Services Office, a private body that sets industry standards. Policyholder Pulse reported that some carriers, including Berkley, have introduced absolute AI exclusions across directors and officers, errors and omissions and fiduciary liability policies. The endorsements cover bodily injury, property damage and personal and advertising injury tied to generative AI outputs, including defamatory content, intellectual property infringement and physical damages traceable to AI-driven errors.<\/p>\n

PHL Firm noted that ISO forms underpin roughly 82% of U.S. property and casualty policies. Adoption is expected to be rapid. Many carriers will attach these endorsements at renewal.<\/p>\n

What Falls Outside Coverage Now<\/strong><\/h2>\n

Plaintiffs have advanced a wide range of legal theories in AI-related filings. Policyholder Pulse catalogued the categories: copyright and intellectual property claims arising from large language model training, privacy and data-use claims, antitrust claims, discrimination and algorithmic bias claims and AI-related securities class actions. Each now sits in a grayer zone for businesses whose carriers have secured AI exclusions.<\/p>\n

Advertisement: Scroll to Continue<\/p>\n

Insurers are also moving…<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Big Insurance Backs Away From AI Risk and Startups Rush In https:\/\/www.pymnts.com\/artificial-intelligence-2\/2026\/big-insurance-backs-away-from-ai-risk-and-startups-rush-in\/ Publish Date: 2026-05-01…<\/p>\n","protected":false},"author":1,"featured_media":238017,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.pymnts.com\/wp-content\/uploads\/2026\/05\/AI-insurance-risks.jpeg","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[19,18],"class_list":["post-238016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-generative-ai","tag-large-language-model"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/238016"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=238016"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/238016\/revisions"}],"predecessor-version":[{"id":238018,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/238016\/revisions\/238018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/238017"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=238016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=238016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=238016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}