AI Uncertainty in Insurance: Coverage Gaps, Casualty Risks, and E&S Innovations

Artificial intelligence is rapidly reshaping business operations, but its impact on insurance liability and claims coverage remains murky. Andrea Ward, SVP of Casualty at CRC Insurance Services, emphasized that the industry still lacks clarity on how losses tied to AI will be priced or picked up—particularly within traditional casualty lines.

This uncertainty carries significant implications for claims adjusters. Emerging technologies often outpace policy language, raising critical questions about how general liability forms will apply to AI-generated outputs. Ward pointed to novel exposures and liability pathways that don’t align with legacy frameworks, suggesting that adjusters must prepare for claims that challenge long-standing assumptions about intent, causation, and product responsibility.

To meet this need, the E&S sector is responding with purpose-built insurance solutions. Ward noted the development of a London-based facility aimed at AI-native businesses—those whose products are built entirely on machine learning—highlighting the need for precise capacity and bespoke policy wording. These initiatives underscore the growing complexity adjusters will face in determining liability and understanding policy triggers.

Despite the enthusiasm around AI’s efficiency gains—such as accelerated research and benchmarking—Ward issued a strong reminder: AI is a tool, not a solution. It may introduce new exposures, like easier access to high-verdict data that could inflate claim expectations. For claims professionals, the challenge is to balance these risks while leveraging AI’s strengths, always anchored by human experience, empathy, and critical decision-making.

As carriers test new models and facilities to accommodate AI risks, claims adjusters should watch for evolving language in liability forms and the development of new claims precedents. With no clear roadmap, the sector must rely on professionals who can interpret ambiguity, contextualize losses, and maintain trust—roles that AI cannot fulfill alone.