2026-10-27 · Source: Insurance Business US
Summary in 3 Points • Delaware plans to create the Artificial Intelligence Company (AIC), allowing AI to run businesses and sign contracts autonomously. • The House Oversight Committee is investigating Delaware's proposal, questioning the lack of safety risk assessments and expert input. • Insurers are grappling with AI liability, with many excluding AI-related risks from policies, while demand for standalone AI liability cover remains low. --- Delaware is proposing a new business entity, the Artificial Intelligence Company (AIC), which would allow AI to operate businesses autonomously, including signing contracts. This initiative has drawn scrutiny from the House Oversight Committee, which is investigating the proposal's lack of safety assessments and expert input. The AIC could limit liability for its backers, raising concerns about accountability in the event of reckless conduct by AI agents. Insurers are currently facing challenges in determining liability when autonomous systems cause losses. Many are excluding AI-related risks from their policies, with generative AI exclusions becoming increasingly common. Despite the availability of standalone AI liability cover, demand remains low, as industry experts suggest that real business losses may be necessary to drive interest in these products. The implications of the AIC could further complicate the insurance landscape, particularly for D&O underwriters who may need to adapt to AI decision-makers. The AIC's liability shield could impact D&O underwriting practices, as insurers may need to reassess coverage for AI-run entities, complicating the claims landscape.
The AIC's liability shield could impact D&O underwriting practices, as insurers may need to reassess coverage for AI-run entities, complicating the claims landscape.