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Insurers move to cap cyber payouts related to AI and ‘LLMjacking’

QBE and Beazley are among the groups that have proposed language for cyber insurance policies limiting payouts on AI losses. Insurers say such sublimits make clear that AI-related risks are covered in policies. But brokers and lawyers for corporate insurance buyers said they were concerned that new terms would eventually be used to reduce coverage for a range of emerging AI-related threats beyond LLMjacking.

“We believe that they could potentially restrict cover,” said Kelly Butler, head of cyber UK for broker Marsh, of these types of additions to contracts.