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Specialty insurers weigh AI liability risks, resist exclusions - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Specialty insurers weigh AI liability risks, resist exclusions by Richard Sine Emerging Risks , Excess and Surplus Lines , P/C Insurers Brown & Brown , The Hartford Insurance Group Inc. Oct 15, 2026 SAN DIEGO – Specialty insurers are more likely to examine artificial intelligence risks case by case than exclude them entirely, but uncertainties surrounding liabilities are a major concern, excess and surplus lines executives say. AI speeds tasks in insurance, including submission review and portfolio construction, making insurers reluctant to exclude it from their customers’ policies. Some said they saw AI coverage as a potential business opportunity for specialty insurers, despite the lack of information about potential losses, during interviews at the Wholesale & Specialty Insurance Association’s annual marketplace earlier this week. “We don’t tell our insureds how to do their job,” said Nir Gabay, Cherry Hill, New Jersey-based head of professional liability for Admiral Insurance. “Nor should we, right?” Admiral underwriters have begun asking questions aimed at understanding how professionals are using AI, he said. Warning signs include professionals relying on AI in place of their own judgment, or using it instead of qualified specialists for tasks such as legal work. “If they’re over-relying on it and not actually doing what they’re supposed to be doing, then it’s really bad,” said Mr. Gabay. “We still underwrite the individual risk itself, and that’s what we’re about in E&S,” said Lynanne St. Denis, Philadelphia-based head of wholesale property and casualty at Navigators, a brand unit of The Hartford. E&S insurers could help to “incubate” new forms of AI coverage because of their greater freedom for setting rates and conditions. In a competitive market where admitted insurers are fighting to win back business from specialty insurers, AI liability is an emerging risk that specialists are likely to retain, said San Diego-based Anurag Batta, president of Bridge Specialty Group, a unit of Brown & Brown. “You need creativity, you need solutions that are more bespoke. And so E&S is really poised to capture those kinds of risks,” he said. Cover or exclude? ISO, the insurance industry standards organization, filed optional general liability exclusions addressing generative AI risks last year. But executives at the conference said they did not plan to adopt those exclusions, echoing executives at the Insurance Leadership Forum earlier this month . CFC, a managing general agent focused on cybersecurity and tech-centric businesses, has embedded affirmative AI coverage into many of its policies, according to Justin Camara, New York-based CEO of CFC USA. Affirmative coverage “should help clients and brokers feel confident in the fact that these ambiguous situations are going to find coverage,” Mr. Camara said. “There’s a lot of uncertainty” about the harms of AI use, Mr. Camara said, especially as AI agents become more autonomous. CFC’s underwriters try to manage the risk of loss by asking the applicant questions about “what protections or controls they have in place to govern (AI) use.” With most policies silent on AI coverage, many insurers may not know how much risk they are assuming, said Erich Bublitz, Kansas City, Missouri-based executive vice president of E&S at AmTrust. “Nobody fully understands what the exposure really is. If you’re writing anything with a tail on AI, you have no idea what you’re underwriting to at this moment,” he said. Cases involving AI-related liability have only started moving through the courts, said Ania Caruso, Atlanta-based national casualty president at Risk Placement Services, the wholesale unit of Arthur J. Gallagher & Co. Rulings that help clarify legal exposure will help guide insurers in creating AI coverage products. “That’s usually where the solution comes in,” Ms. Caruso said. 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