Major insurers move to avoid liability for AI lawsuits as multi-billion dollar risks emerge — Recent public incidents have lead to costly repercussions

November 25, 2025

, By Tom’s Hardware

Major insurers move to avoid liability for AI lawsuits as multi-billion dollar risks emerge — Recent public incidents have lead to costly repercussions

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Major insurers are moving to ring-fence their exposure to artificial intelligence failures, after a run of costly and highly public incidents pushed concerns about systemic, correlated losses to the top of the industry’s risk models. According to the data-analytics-id=”inline-link” href=”https://www.ft.com/content/abfe9741-f438-4ed6-a673-075ec177dc62″ target=”_blank” data-url=”https://www.ft.com/content/abfe9741-f438-4ed6-a673-075ec177dc62″ referrerpolicy=”no-referrer-when-downgrade” data-hl-processed=”none” data-mrf-recirculation=”inline-link”>Financial Times, AIG, WR Berkley, and Great American have each sought regulatory clearance for new policy exclusions that would allow them to deny claims tied to the use or integration of AI systems, including chatbots and agents.

The requests arrive at a…

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Major insurers move to avoid liability for AI lawsuits as multi-billion dollar risks emerge — Recent public incidents have lead to costly repercussions

November 25, 2025

, Published By Tom’s Hardware

Major insurers move to avoid liability for AI lawsuits as multi-billion dollar risks emerge — Recent public incidents have lead to costly repercussions

Major insurers are moving to ring-fence their exposure to artificial intelligence failures, after a run of costly and highly public incidents pushed concerns about systemic, correlated losses to the top of the industry’s risk models. According to the data-analytics-id=”inline-link” href=”https://www.ft.com/content/abfe9741-f438-4ed6-a673-075ec177dc62″ target=”_blank” data-url=”https://www.ft.com/content/abfe9741-f438-4ed6-a673-075ec177dc62″ referrerpolicy=”no-referrer-when-downgrade” data-hl-processed=”none” data-mrf-recirculation=”inline-link”>Financial Times, AIG, WR Berkley, and Great American have each sought regulatory clearance for new policy exclusions that would allow them to deny claims tied to the use or integration of AI systems, including chatbots and agents.

The requests arrive at a…

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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