2026-11-04 · Source: Insurance Business UK
Summary in 3 Points • Tim Johnson notes that civil liability claims related to AI are expected to follow as businesses grapple with liability issues. • The gap between expectation and reality in cyber policies often leads to disputes between insurers and policyholders. • Brokers must understand AI tools used by clients to effectively assess risks and ensure appropriate coverage. --- Tim Johnson, a partner at Browne Jacobson, anticipates that civil liability claims related to AI will emerge as businesses navigate complex liability issues. He highlights that the gap between what businesses expect from their cyber policies and what is actually covered often leads to disputes, particularly when critical extensions like business interruption are overlooked. Brokers are encouraged to probe deeper into their clients' use of AI tools to assess risks accurately and ensure that coverage aligns with actual exposures. As AI technology evolves, the responsibilities of businesses using these tools become increasingly complex. Johnson warns that many businesses may mistakenly believe they are fully covered under their cyber policies without understanding the nuances of their specific needs. This situation presents an opportunity for brokers to engage more closely with clients, ensuring they are aware of any changes in their AI usage throughout the policy year. The evolving nature of AI risks may lead to a more cautious approach among businesses, allowing brokers to better tailor coverage to meet their clients' needs. The gap between expectation and reality in cyber policies often leads to disputes, highlighting the need for brokers to understand AI tools used by clients.
The gap between expectation and reality in cyber policies often leads to disputes, highlighting the need for brokers to understand AI tools used by clients.