Lloyd’s coverholder Testudo has secured additional underwriting support from insurers Atrium and QBE for its generative AI liability insurance product.
The backing increases available limits to $9.25m per insured and expands capacity for enterprises deploying generative AI technologies.
The addition strengthens Testudo’s (re)insurance panel alongside Apollo, reflecting growing underwriting interest in risks linked to the rapid adoption of generative AI.
AI-related exclusions are becoming more common in traditional liability policies, including those based on Verisk wordings, which can leave organisations exposed to litigation and financial loss.
Testudo’s policy is designed to respond to third-party claims arising from AI-generated outputs, covering legal costs and damages where conventional commercial general liability insurance may not apply.
The capacity expansion comes as generative AI-related litigation has increased by 137% year over year, according to Testudo data.
Regulatory and legal scrutiny of AI-driven decision-making is also increasing across sectors including technology, financial services, healthcare and media.
Mark Titmarsh, Co-founder and Head of Insurance at Testudo, said:
“Lloyd’s has always led with courage when insuring new and emerging risks. We are delighted and honoured to welcome the innovative Atrium and QBE to our (re)insurance panel for our generative AI liability insurance product. Their support reflects a shared commitment to thoughtful, well-structured underwriting approaches that give enterprises greater confidence to adopt generative AI.”
Michael Cuistion, Head of Marine & Energy Liability at Atrium, said:
“Creating insurance products which truly address the emerging risks of tomorrow is embedded within our approach to underwriting at Atrium. We believe this will deliver real value to businesses that utilise generative AI, enabling them to trade with confidence.”
Peta Kilian, Senior Underwriter, Innovation at QBE, said:
“As a leading global insurer, it’s our role to support businesses as they navigate evolving technologies and emerging risks. We’re pleased to support Testudo’s innovative AI liability insurance solution, helping our clients with AI risk scoring and reporting tools to better detect and evaluate potential liabilities.”
Ian Kerton, UK CEO at Gallagher Re, said:
“Gallagher Re is proud to have partnered Testudo to secure this capacity. We are also pleased to have continued supporting Lloyd’s as the premier marketplace for providing innovative insurance coverage.”
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