AI Insurance Exists. Getting It Is The Hard Part.

Companies can take different approaches for insurance coverage of risks associated with AI as insurers weigh their options for creating new policies. Corey Gray and Jon Mills of Boies Schiller Flexner explain the one clear approach for companies is that they must be heading toward obtaining AI coverage.

What happens when AI goes wrong?

Businesses large and small may decide they need insurance to manage AI risks. However, getting coverage isn’t easy. Some insurers are hesitant to insure AI risks, and some exclude AI coverage altogether. But going without AI insurance is risky business.

The risk is compounded by businesses needing to navigate an emerging and disjointed AI regulatory landscape. California focuses on AI developer reporting requirements; Colorado targets algorithmic discrimination; Tennessee regulates voice and image impersonation. The FCC prohibits “voice cloning,” while the FDA requires AI use disclosures, and the SEC and FTC prohibit deceptive “AI washing” in