AI Lawsuit Surge Opens Door for Specialized Insurers

A rise in AI-related lawsuits is prompting insurers to reassess coverage of AI risks, creating an opening for startups that sell specialized AI policies. Consumers filed about 800 AI-related lawsuits in 2025, up 140% from the prior year, according to The Information.

The publication said Berkshire Hathaway, Chubb and Travelers are seeking to carve AI-related damages out of traditional corporate policies, with state regulators approving more than 80% of those exclusion requests. Specialized insurers such as Corgi are selling standalone AI liability policies that cover AI mistakes, AI-related intellectual-property claims, property damage, and software service interruptions.