In Part 3 of the Metz Lewis AI Insights Series, Barry Friedman of Metz Lewis and James Buldas of Henderson Brothers move from identifying AI-related insurance risks to addressing them. The insurance market is shifting from “silent AI” toward more explicit allocation of AI risk. Affirmative options are emerging, including AI endorsements to cyber, technology E&O and media policies, AI performance insurance, and standalone AI liability coverage. These products are still specialized and depend heavily on the use case. Barry and James outline seven practical steps businesses can take now:
- auditing the entire insurance program
- mapping AI use cases to coverage
- working with brokers on exclusions and carve-backs
- documenting AI governance
- reviewing vendor indemnities
- describing AI use accurately in applications and claim notices
- revisiting coverage whenever an AI tool’s authority changes
Questions about AI risk in your business? The Metz Lewis Intellectual Property and Technology group, including Barry Friedman, Matthew Borges and Frank Kelley, advises businesses on AI governance, technology and vendor contracts, and related legal issues. Contact our team to discuss how these issues may affect your organization.
Read Part 3 of the AI Insights Series: The AI Coverage Gap, Part 3
New to the series? Catch up on the earlier installments:
- Part 1: Introducing the Metz Lewis AI Insights Series – https://www.metzlewis.com/news/introducing-the-metz-lewis-ai-insights-series/
- Part 2: The AI Coverage Gap: What Businesses Don’t Know Can Hurt Them – https://www.metzlewis.com/blog/ai-insights-series-part-2/
