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ARTICLE · 30 MARCH 2026

Insurance Coverage For Emerging AI And Social Media Liabilities

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The Delaware Superior Court denied Meta insurance coverage for the defense of thousands of social media addiction lawsuits, finding that Meta's intentional platform design choices precluded the alleged harms...

United StatesInsurance
Charles Edwards
Charles Edwards
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Highlights

  • The Delaware Superior Court denied Meta insurance coverage for the defense of thousands of social media addiction lawsuits, finding that Meta’s intentional platform design choices precluded the alleged harms from qualifying as an “accident” under its Commercial General Liability (CGL) policies.
  • The Delaware court’s conclusion raises significant issues for software companies, because CGL policies typically cover the types of damages alleged against Meta and other policy types are often structured to avoid coverage otherwise provided by CGL policies.
  • Specialty AI insurance policies are beginning to emerge to fill these gaps, but companies deploying AI agents should not wait for the market to mature — a proactive review of existing coverage is essential now.

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