Specialist insurer CFC has added affirmative AI coverage to its media policy, effective July 30, completing a portfolio-wide program that now embeds explicit AI wording across seven core products. The move gives brokers and policyholders direct clarity on how the policy responds to liability claims where AI contributed to content creation, at a time when the global insurance market remains split between silent, affirmative, and exclusionary approaches to AI risk.
What the media policy update covers
Under the revised wording, the involvement of AI in media activities does not block the policy from responding to claims. That means defamation, intellectual property infringement, and other media and professional liability exposures remain covered even when AI-assisted content creation is part of the story. CFC has also updated the policy's cyber coverages with affirmative AI language, aligning with the protection offered through its Cyber Proactive Response product. The update clarifies how established cyber triggers work when AI is in the mix, such as when AI hallucinations or large language model prompts cause unexpected computer systems downtime.
"AI is no longer an emerging technology for media companies. It is already embedded in the way many businesses create, manage and distribute content," said Nick Line, chief underwriting officer at CFC. "These enhancements are designed to provide clarity on how coverage responds when AI is involved, while also addressing new cyber and privacy exposures arising from AI adoption."
The affirmative language builds on CFC's existing media policy structure, which combines multimedia and professional liability cover with cyber, privacy, property, general liability, and legal expenses insurance. It does not create a standalone product.
A wider portfolio-level rollout that began in 2026
The media update is the final piece of a program CFC started in June 2026, when it introduced affirmative AI wording across six other products: technology errors and omissions, professional liability, eHealth, intellectual property, management liability, and its CPR cyber product. At the time, Line said AI now sits within day-to-day business operations across every industry and interacts with the same risks insurers have always covered. CFC's focus, he said, was on giving clients and brokers clarity rather than relying on implied or silent cover.
How the market is handling AI risk
CFC's approach stands in contrast to moves in the US, where carriers including AIG and Berkley have filed AI-related exclusion endorsements for general liability and professional lines. Verisk subsidiary ISO filed similar exclusionary wording in January 2026. The London market has been slower to act. The Lloyd's Market Association's head of technical underwriting, David Powell, said the association is waiting for market instruction before drafting equivalent exclusionary language.
A Lloyd's Market Association survey of underwriters identified professional indemnity as the line of business with the highest perceived potential impact from AI-related losses. Lloyd's has flagged AI risk within its innovation risk category, which now accounts for around 5% of the market's overall gross written premium. Some syndicates have moved toward affirmative cover instead of exclusions. Chaucer and coverholder Armilla launched a combined cyber and standalone AI liability structure offering aggregate limits of $25 million or more per organization. Beazley and QBE have introduced AI sublimits within their cyber programs, capping AI-related payouts at around 10% of the total policy limit.
Why this matters for insurance professionals
The split between affirmative, silent, and exclusionary AI wordings is becoming a renewal-point differentiator, especially for brokers placing international media, publishing, and professional services accounts. Underwriters consistently flag professional indemnity as the class most exposed to AI-driven claims. For professionals who need to assess these exposures and advise clients, AI for Insurance training can help bridge the technical gap between AI's real-world use and how policy language responds. CFC's decision to write affirmative cover across its entire portfolio, rather than exclude AI risks or leave them to silent coverage, gives brokers a clear benchmark to compare against carriers moving in the opposite direction.
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