CFC adds AI coverage to IP policy

CFC has updated its standalone intellectual property policy with affirmative AI wording, confirming that otherwise covered claims remain eligible for coverage when AI is involved.

The change clarifies the policy’s response without altering its fundamental scope. It addresses exposures arising across the AI lifecycle, including training data, underlying algorithms and generated content. CFC noted that responsibility for alleged infringement may fall on businesses deploying or using AI systems, rather than solely on technology providers.

The update comes as businesses face unresolved questions around AI-related ownership, infringement and liability across jurisdictions. It forms part of CFC’s broader effort to introduce affirmative AI wording across its insurance portfolio.

“AI is creating enormous opportunities for businesses, but it is also introducing new and increasingly complex intellectual property risks. Questions can arise at every stage of the AI lifecycle, from the data used to train a model and the technology itself to the outputs it produces.” – Maddi Brown, IP Practice Leader at CFC.