Specialist insurance provider CFC has developed new policy wording that details how it will treat AI-related exposures. CFC says the wording update will apply to seven products and ensures policyholders do not have to rely on implied or silent cover.

The updated products are technology errors and omissions; professional liability; eHealth; intellectual property; management liability; media and cyber proactive response. The wording deals with AI exposures such as model hallucination, AI generated content and model drift.

Nick Line, chief underwriting officer at CFC, said: “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.”

He added: “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.