CFC Introduces Affirmative AI Coverage in Intellectual Property Policies; CRC Specialty Unveils Insurisk Cyber Platform

CFC has announced the introduction of affirmative artificial intelligence (AI) coverage within its intellectual property (IP) insurance policy, marking a significant development in addressing the complex exposures that AI technologies present to businesses.

As AI increasingly transforms the creation, development, and commercialization of intellectual property, the legal frameworks governing AI and IP remain fragmented and continue to evolve across different jurisdictions. This evolving landscape raises critical questions about training data usage, ownership rights, infringement risks, liability, and the treatment of AI-generated outputs.

CFC’s new affirmative wording aims to remove ambiguity from policy language without altering the fundamental scope of coverage. It explicitly confirms that IP claims involving AI will be covered when they meet the policy’s existing coverage criteria. This clarity is intended to provide brokers and their clients with greater confidence in the protection offered.

The enhancement acknowledges that AI-related IP risks can arise at any stage of the technology lifecycle. It also reflects a market reality where responsibility for alleged infringement may rest not only with technology providers but also with businesses deploying or using AI systems.

Unlike limited AI-related IP extensions offered by some insurers, CFC’s standalone intellectual property policy is designed to protect businesses against a broad spectrum of IP disputes. The addition of affirmative AI coverage builds upon this specialist foundation, reinforcing CFC’s commitment to addressing emerging technology risks.

This launch is part of CFC’s broader initiative to embed affirmative AI coverage across its insurance portfolio. The company aims to provide customers with clearer and more explicit policy language as AI becomes increasingly integrated into business operations.

In a related development, CRC Specialty, a wholesale specialty insurance distributor, announced the launch of Insurisk Cyber through its Insurisk platform. This new offering is a comprehensive cyber and technology insurance solution tailored to address the growing complexity of digital risk ecosystems faced by organizations.

Insurisk Cyber is supported by A- or better AM Best-rated paper and combines cyber liability, technology errors and omissions (E&O), and miscellaneous professional liability coverage into a single, streamlined policy form. This integrated approach simplifies coverage for insureds facing multifaceted cyber and technology exposures.

Beyond insurance protection, policyholders gain access to active threat monitoring services and discounted rates on a suite of cyber risk management resources. These include secure software development monitoring, ransomware and data theft monitoring, as well as employee security awareness training and compliance tools.

Designed to support a wide range of cyber and technology risks, Insurisk Cyber maintains disciplined underwriting standards. The program is particularly well-suited for technology-driven organizations and businesses with complex technology E&O exposures.

These two launches underscore the insurance industry’s response to the evolving challenges posed by AI and cyber risks. By providing affirmative AI coverage and integrated cyber-technology insurance solutions, CFC and CRC Specialty are equipping businesses with more precise and comprehensive risk management tools in an increasingly digital and AI-driven environment.

Topics covered include InsurTech, data-driven artificial intelligence, cyber risk, excess and surplus lines, new market solutions, and property-related exposures.

The developments come ahead of October 1st, when industry discussions will focus on "The Cost of an Empty Desk: How Claims Staffing Protects the Bottom Line," highlighting the importance of operational resilience in claims handling amid rising technology risks.