Beazley launches new cyber endorsements to cover firms’ internal AI use

Speciality insurer Beazley has expanded its cyber cover proposition to “support businesses manage the risks arising from their own use of artificial intelligence (AI)”.

Beazley said that while many organisations are focused on defending themselves from external AI-enabled cyber attacks, its new cover responded to the “equally important” risks that emerge from businesses deploying AI within their own operations.

As such, the firm is adding two new endorsements to its cyber and technology errors and omissions (E&O) policies.

The first will offer additional cover for firms that opt to voluntarily shut down “malfunctioning” AI systems before significant financial harm can occur.

The second – termed AI regulatory defence and penalties cover – will add support for certain AI-specific regulatory proceedings that have arisen from unintentional non-compliance.

Affirmative AI cover

The announcement comes shortly after Beazley confirmed that it had added affirmative AI cover to its cyber policies, in a move aimed at providing “certainty and clarity for clients by expressly addressing AI-related risks already covered within existing cyber cover”.

Alessandro Lezzi, group head of cyber risks at Beazley, said: “These endorsements reflect our commitment to evolving our cover, keeping pace with our clients’ needs and providing greater clarity and confidence as businesses adopt AI.

“Our full spectrum cyber offering is designed to address the totality of cyber risk, helping businesses navigate both emerging threats and the complexities that come with embracing new technologies.”