Insurers Retreat from Covering AI-Generated Outputs
🛡️ Several major insurers are quietly limiting or excluding coverage for losses tied to AI-generated outputs across cybersecurity and errors-and-omissions policies. Carriers cite inability to trace model reasoning and nondeterministic outputs, prompting policy carve-outs, declinations for AI vendors, and premium increases for AI use. Underwriters are probing customers' AI governance and distinguishing governed deployments from experimental systems.
