Specialist insurance provider CFC has launched a programme of updates to embed affirmative AI coverage across seven key policies, a move that responds directly to customer demand for clarity on AI-related risks. The rollout shifts the market away from reliance on implied or silent coverage, giving clients and brokers explicit language on how AI is treated within their policies.
The updates affect a range of CFC's core products, including Technology Errors & Omissions (Tech E&O), Professional Liability (E&O), eHealth, Intellectual Property (IP), Management Liability, Media, and Cyber Proactive Response (CPR). By implementing explicit AI-related language, CFC aims to eliminate ambiguity and foster more consistent claims outcomes. The changes also give brokers greater confidence when advising clients in a shifting risk environment.
Moving beyond implied coverage
Nick Line, Chief Underwriting Officer at CFC, said: "AI is now embedded in day-to-day business operations across all industries and is rapidly becoming part of all commercial activities, which means it interacts with the same risks that insurers have always covered. Our focus has been on giving clients and brokers clarity within our policies. Rather than relying on implied or silent coverage, we see value in being explicit about how AI is treated."
The updates are designed to eliminate ambiguity, fostering more consistent claims outcomes. They also reflect increasing demand from policyholders for transparency and certainty as AI adoption accelerates, CFC highlighted.
Novel AI exposures in focus
CFC will address emerging AI risks such as model hallucination, AI-generated content, and model drift. These exposures go beyond traditional cyber concerns, touching professional liability, intellectual property, and media lines. By integrating explicit AI protection into its existing product range, CFC aims to offer businesses a more reliable and extensive framework for managing technological change.
Line added: "At its core, AI acts as an accelerant of existing risk, reinforcing the need to embed AI considerations across our existing products. While much of the market discussion around AI has centred on cyber insurance, we have taken a broader approach that integrates coverage across multiple products, reflecting the true breadth of its impact on business risk."
As AI continues to evolve, parts of the market are understandably focused on how to manage uncertainty, including through exclusions. "We've taken the time to understand how AI risk operates in practice and reflected that explicitly in our coverage," Line said. "Ultimately, this is about keeping insurance aligned with the real world. AI is reshaping how businesses operate, and our role is to ensure insurance products evolve in step."
CFC's approach to embedding affirmative AI coverage across multiple products mirrors a wider industry push to address AI risk explicitly, a topic central to AI for Insurance discussions.
Why this matters for insurance professionals
For underwriters, brokers, and claims handlers, CFC's update signals that AI risk is no longer a niche concern. It cuts across multiple lines, from professional liability to media and IP. Explicit policy language reduces the risk of coverage disputes and gives brokers a clearer basis for advising clients. As more insurers follow suit, professionals who fail to understand how AI exposures interact with traditional coverages may leave their clients exposed. The move also underscores a broader shift: insurers are moving from reactive exclusions to proactive, integrated coverage models for AI-driven risk.
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