Insuring AI Risk

As artificial intelligence becomes a material driver of operational and financial risk, insurers and insureds alike are reassessing how losses linked to AI systems are priced, covered, and transferred.

Insuring AI Risk provides a clear, analytical overview of how the cyber and specialty insurance markets are responding to AI-driven exposures. Written for risk managers, CFOs, and senior decision-makers, the book explains how insurers evaluate AI-related risk, where coverage gaps emerge, and how organizations can position themselves for insurability.

This volume examines underwriting practices through the lens of real-world insurer questions, policy language trends, and claims scenarios. It focuses on practical implications rather than theory, helping financial leaders understand how AI governance and controls directly influence premiums, limits, exclusions, and claims outcomes.

Key areas covered include:

•How insurers define and categorize AI-related losses
•Underwriting questions tied to AI governance and controls
•The role of cyber, E&O, and specialty policies in AI coverage
•Common exclusions, sub-limits, and coverage constraints
•Contractual risk transfer and indemnification mechanics
•Preparing evidence insurers expect during placement and claims

Designed to support informed risk financing decisions, this book equips leaders to engage more effectively with brokers, insurers, and legal teams while aligning AI risk management practices with evolving insurance market expectations.