Larry D. McClain

Insurers seek regulatory approval to cap AI-related liability amid rising litigation and systemic algorithmic risks.

Liability caps may shift financial exposure from insurers to businesses deploying artificial intelligence systems.

Specialized AI insurance policies are emerging to address algorithm errors, data leaks, compliance failures, and IP disputes.

Many traditional E&O policies now exclude AI-related claims, requiring businesses to review coverage carefully.

Strong AI governance, tailored insurance, and proactive risk management are essential as accountability frameworks evolve.

AI Liability Reshapes Insurance and Risk

Part B premium ↑ to $202.90/mo; deductible ↑ to $283
Part A hospital deductible ↑ $60 to $1,736
Full Part A premium ↑ $47 to $565/mo
Increases may reduce Social Security checks; nearly 10% Part B hike cuts into COLA
Review plans, budget for higher costs, and check for assistance before Dec. 7, 2025