Insurers Move to Cap Cyber Payouts Related to AI and ‘LLMjacking’

Gretchen Hoff Varner was quoted in a Financial Times article examining how insurers are introducing limits and other policy language to cap coverage for AI related cyber risks, including so called “LLMjacking,” as the technology rapidly evolves. The piece highlights concern among brokers and policyholder advocates that new provisions could narrow coverage for a broad range of emerging AI driven threats.

Gretchen noted that insurers are already using sublimits in existing policies to attempt to reduce the scope of coverage for AI risks, raising important questions for corporate policyholders as they deploy AI tools more widely and assess whether current insurance programs adequately respond to new exposures.