CFC, the specialist insurance provider and pioneer in emerging risk, today announces a programme of updates to embed affirmative AI coverage within its portfolio.
The rollout introduces clear, explicit AI-related language across seven key policies, ensuring customers have certainty around how AI-related exposures are treated, rather than relying on implied or silent coverage.
“AI is now embedded in day-to-day business operations across all industries and is rapidly becoming part of all commercial activities, which means it interacts with the same risks that insurers have always covered,” said Nick Line, Chief Underwriting Officer at CFC.
Our focus has been on giving clients and brokers clarity within our policies. Rather than relying on implied or silent coverage, we see value in being explicit about how AI is treated. Nick Line, Chief Underwriting Officer
The updates are designed to eliminate ambiguity, support more consistent claims outcomes and give brokers greater confidence when advising clients in an evolving risk landscape. They also reflect increasing demand from policyholders for transparency and certainty as AI adoption accelerates.
The programme includes updates across a range of CFC’s core products, including Technology Errors & Omissions (Tech E&O), Professional Liability (E&O), eHealth, Intellectual Property (IP), Management Liability, Media, and Cyber Proactive Response (CPR). CFC will be addressing novel AI exposures like model hallucination, AI generated content and model drift.
By embedding affirmative AI coverage within its portfolio, CFC aims to provide a more consistent and comprehensive foundation for businesses navigating the next phase of technological change.
“At its core, AI acts as an accelerant of existing risk, reinforcing the need to embed AI considerations across our existing products.” said Line. “While much of the market discussion around AI has centred on cyber insurance, we have taken a broader approach that integrates coverage across multiple products, reflecting the true breadth of its impact on business risk.
“As AI continues to evolve, parts of the market are understandably focused on how to manage uncertainty, including through exclusions. We've taken the time to understand how AI risk operates in practice and reflected that explicitly in our coverage. Ultimately, this is about keeping insurance aligned with the real world. AI is reshaping how businesses operate, and our role is to ensure insurance products evolve in step.”
