Cyber insurance specialist CFC is rolling out AI-related language across key policies to offer certainty on how such exposures are treated.

It says the aim is to provide clarity “rather than relying on implied or silent coverage” for AI risks. The updates are designed to eliminate ambiguity, support more consistent claims outcomes and give brokers greater confidence when advising clients.

CFC says the move reflects increasing demand from policyholders for transparency and certainty as AI adoption accelerates.

The updates cover CFC’s core products including professional liability, e-health, intellectual property, management liability, media, and cyber proactive response. They will address novel AI exposures such as model hallucination, AI-generated content and model drift.

“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,” CFC chief underwriting officer Nick Line said.

“We see value in being explicit about how AI is treated.”

Mr Line says while much of the discussion on AI has revolved around cyber insurance, a broader approach is needed to integrate coverage across many products.

“At its core, AI acts as an accelerant of existing risk, reinforcing the need to embed AI considerations across our existing products.

“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.”