Corporate insurers are starting to back away from AI risk

Artificial intelligence isn’t just a headache for human resources. and more, corporate legal teams are becoming entangled in the technology’s mistakes. Generative AI -related lawsuits in the United States grew 978% from 2021 to 2025, according to a report from the reinsurance broker Gallagher Re. But a growing number of insurance companies are removing AI liability coverage. Berkshire Hathaway, Chubb, and Travelers have all won approval to largely drop the protection in recent months.