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Cyber insurers rewrite policies, excluding AI risks without governance

Cyber insurance policies are increasingly excluding coverage for AI-related incidents, forcing companies to demonstrate robust governance over their AI usage. Insurers are implementing new policy forms and endorsements that exclude claims arising from AI deployment, particularly when customer data is involved. This shift is driven by rising AI risks, with a significant percentage of security leaders reporting AI-related exclusions in their policies and insurers actively questioning applicants about their AI governance practices. AI

IMPACT Companies must implement AI governance to maintain cyber insurance coverage, impacting deployment strategies and risk management.

RANK_REASON New policy forms and endorsements from major insurance entities are changing the landscape of cyber insurance coverage related to AI. [lever_c_demoted from significant: ic=1 ai=0.4]

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Cyber insurers rewrite policies, excluding AI risks without governance

COVERAGE [1]

  1. Forbes — Innovation TIER_1 English(EN) · Kiran Bhujle, Forbes Councils Member ·

    Your Insurer Rewrote Your Cyber Policy While You Were Deploying AI

    Organizations must now be able to answer this: How many AI tools are operating in your environment, what data can they access and who approved them?