Key facts
- Beazley has launched new cyber cover for businesses using AI.
- The new cover addresses risks beyond AI-enabled cyber attacks.
- It includes protection for voluntary shutdowns of malfunctioning AI systems.
- AI Regulatory Defence & Penalties cover is also available.
- Alessandro Lezzi is Group Head of Cyber Risks at Beazley.
Specialty insurer Beazley has expanded its cyber insurance offerings with new endorsements designed to address risks associated with businesses' deployment of artificial intelligence. The new coverage aims to mitigate financial, operational, and regulatory consequences that may arise from AI systems within a company's own operations, moving beyond threats posed by AI-enabled cyber attacks.
One of the new solutions is an AI Voluntary Shutdown cover, which provides protection for organizations that need to suspend their own malfunctioning AI systems to prevent significant financial and reputational damage. Additionally, Beazley has introduced AI Regulatory Defence & Penalties cover to support clients facing regulatory investigations or fines due to unintentional misuse of AI.
Alessandro Lezzi, Group Head of Cyber Risks at Beazley, stated that these endorsements reflect the company's commitment to evolving its cover to meet client needs as they adopt AI. He emphasized that Beazley's Full Spectrum Cyber offering aims to address the totality of cyber risk, helping businesses navigate emerging threats and the complexities of new technologies. This follows Beazley's earlier confirmation of affirmative AI cover in its cyber and tech E&O policies, which expressly addresses AI-related risks already covered within existing policies.