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The Register · September 18, 2026 · On the brief until October 2, 2026

AI risks make some insurers wary of corporate liability

FinanceCorporate LawBusiness
THE AI ANGLE
Exposing corporations to potentially uninsurable liabilities and litigation through operational failures, misinformation, and copyright infr

According to a RAND Corporation report, insurers are increasingly cautious about covering generative and agentic AI risks, with carriers like W. R. Berkley and industry group Verisk/ISO introducing exclusions into standard corporate policies such as D&O, E&O, and property and casualty. Despite facing hundreds of lawsuits and recorded incidents involving intellectual property, hallucinations, and discrimination, enterprises continue rapid deployment without guaranteed liability protection. This development matters for corporate leadership and finance, as the lack of adequate insurance coverage could force firms to delay AI initiatives to fulfill their fiduciary obligations.

Summary written by AI Business Lens with an AI model from the article at theregister.com. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE
Students can debate how corporate boards should balance their fiduciary duty to pursue AI-driven innovation against the legal and financial exposure of deploying tools that insurers explicitly refuse to cover.

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