The insurance industry is growing increasingly wary of covering AI-related corporate liability, as harms such as deepfakes, misinformation, privacy violations, and discriminatory decisions don't fit neatly within existing insurance frameworks. Some insurers, like W. R. Berkley, are introducing explicit AI exclusions, while standardized policy language excluding generative AI harms is being adopted across a large portion of US property and casualty policies. RAND argues that developing a common taxonomy for AI incidents and clearer coverage notices are needed, and expects AI insurance to mature over time — but the current uncertainty could slow enterprise AI adoption.
