<p><span style=”font-weight: 400;”>As artificial intelligence agents take on more business tasks with less human oversight, insurers are starting to respond in very different ways. Some are creating policies to cover losses linked to AI errors, while others are adding clauses that block such claims altogether. The shift reflects growing concern over how companies are using agentic AI to handle decisions, workflows and client services on their own.&nbsp;</span></p>
<p><span style=”font-weight: 400;”>According to a report by Agence France-Presse, the insurance industry is now being pushed to rethink how traditional liability coverage applies to AI-driven mistakes.</span></p>
<h2><span style=”color: #ba372a;”><strong>Why Are Insurers Changing Their Approach To AI Risks?</strong></span></h2>
<p><span style=”font-weight: 400;”>Phil Dawson of specialist insurer Armilla said the purpose of advanced AI is often to replace a significant part of human support and supervision in decision-making. He said this creates pressure on the logic behind existing insurance products.&nbsp;</span></p>
<p><span style=”font-weight: 400;”>Businesses are adopting AI agents to perform computer-based tasks independently, even as the technology still produces errors such as hallucinations, where false information is presented confidently.</span></p>
<p><span style=”font-weight: 400;”>A research paper by analyst Sonal Madhok and law professor Anat Lior, published by brokerage firm Willis Towers late last year, said AI-related liability has so far often been absorbed under existing policies through what is known as silent coverage.&nbsp;</span></p>
<p><span style=”font-weight: 400;”>They argued that this may not continue for long and that insurers are likely to start addressing AI directly in policy language.</span></p>
<h2><span style=”color: #ba372a;”><strong>What Types Of AI Coverage Are Being Offered Now?</strong></span></h2>
<p><span style=”font-weight: 400;”>Jonathan Mitchell of Founder Shield said some insurers have moved past a wait-and-see approach. He noted that certain standard policies now carry absolute AI exclusion clauses, while others are being adjusted to include AI malfunction and hallucination risks. Founder Shield also offers extensions for real-world damage, such as AI over-ordering inventory.</span></p>
<p><span style=”font-weight: 400;”>Armilla tests AI models before offering coverage and may reject areas such as medical diagnostics or mental health applications.&nbsp;</span></p>
<p><span style=”font-weight: 400;”>Munich Re also provides AI-related coverage and says errors cannot be fully eliminated because AI models carry statistical uncertainty. As Agence France-Presse noted, Deloitte estimates the global AI insurance premium market could reach $4.8 billion by 2032.</span></p>

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