Beazley confirms AI — related cover in cyber, tech E&O policies

By Ashish Tiwari Sept 18 (The Insurer) — Beazley on Thursday confirmed affirmative coverage for AI-related risks in its cyber and technology errors and omissions policies, aiming to give clients clarity as businesses expand their use of the technology. Companies are adopting AI across their operations, while cyber criminals are also using the technology to increase the scale and speed of attacks. This has raised doubts in the cyber market over whether AI liability will evolve into a standalone cover or remain embedded into existing policies. Beazley said there’s widespread uncertainty about the future of AI and its impact on business, both constructive and destructive. “Insurance policies should not add to this uncertainty,” Alessandro Lezzi, Beazley's group head of cyber risks, said. Earlier this year, Lezzi had told The Insurer that cyber underwriters will need to adapt the questions they ask to assess AI-related controls and governance processes to maintain insurability amid rapid technological evolution. The carrier’s latest risk and resilience survey found that while 35% of respondents plan to invest in AI to boost resilience, at the same time one-third selected AI-led tech di