CFC adds affirmative AI coverage across insurance portfolio

Specialist insurer CFC has added affirmative AI coverage language to seven insurance products, introducing explicit wording for AI-related exposures such as model hallucinations, AI-generated content, and model drift.

The updates span Tech E&O, Professional Liability, eHealth, Intellectual Property, Management Liability, Media, and Cyber Proactive Response policies and are designed to provide greater clarity and consistency as businesses increasingly adopt AI technologies.

Rather than launching a standalone AI product, CFC is embedding AI considerations across multiple lines, viewing AI as an accelerant of existing risks.

“At its core, AI acts as an accelerant of existing risk, reinforcing the need to embed AI considerations across our existing products. While much of the market discussion around AI has centred on cyber insurance, we have taken a broader approach that integrates coverage across multiple products, reflecting the true breadth of its impact on business risk. As AI continues to evolve, parts of the market are understandably focused on how to manage uncertainty, including through exclusions. We’ve taken the time to understand how AI risk operates in practice and reflected that explicitly in our coverage. Ultimately, this is about keeping insurance aligned with the real world. AI is reshaping how businesses operate, and our role is to ensure insurance products evolve in step.” – Chief Underwriting Officer Nick Line.