Beazley launches cyber cover for AI shutdowns and regulatory risks

By Ashish Tiwari Sept 24 (The Insurer) — Beazley has launched two cyber insurance endorsements aimed at helping businesses manage risks arising from their own use of AI, the insurer said on Thursday. The new cover includes an "AI Voluntary Shutdown" solution for organisations that suspend malfunctioning AI systems before they cause significant financial or reputational damage, Beazley said. It also includes cover for regulatory defence costs and penalties if a client's unintentional misuse of AI results in an investigation or fine. Alessandro Lezzi, Beazley's group head of cyber risks, said the endorsements “reflect our commitment to evolving our cover, keeping pace with our clients' needs and providing greater clarity and confidence as businesses adopt AI". The launch follows Beazley's confirmation that its cyber and technology E&O policies provide affirmative coverage for AI-related risks, as insurers seek to give customers certainty over how existing policies respond to the technology. In April, the Financial Times reported that Beazley was among insurers proposing cyber policy language to cap payouts for some AI-linked losses, including those tied to regulatory breaches. Beazle