CFC and Beazley both wrote AI into cyber wording this month — affirmative cover for AI-driven attacks against the policyholder. CFC’s change is in its financial institutions suite; Beazley’s is an endorsement on its cyber product. Neither rewrites a restoration contractor’s form by default.
Restoration contractors run AI on client work: voice bots taking the 2 AM water call, photo-estimating tools, chatbots answering homeowner coverage questions. The new wording covers AI used against you. It says nothing about your own AI giving a homeowner bad advice, misquoting a job, or mishandling a claim detail.
Owner: if your cyber form now names AI, it answers AI-driven attacks against you. It does not answer what happens when your AI caused the loss — that may sit under E&O, professional liability, or between them.
Ops: map every point where AI touches a client or claim file. Each touchpoint is an E&O question your current policy may never have been asked.
General liability is being handed the opposite tool — new ISO exclusion forms effective this January let carriers strip AI-related losses out of standard GL. Don’t assume the GL backstops what cyber doesn’t.
Three questions for your broker this month:
- Does my E&O respond when an AI tool I run gives a client wrong advice?
- If my AI intake tool is the attack vector, does cyber still respond?
- Where do the new ISO AI exclusions leave my GL on AI-assisted work?
Restoration Intel is operational intelligence for restoration operators, not legal or insurance advice. Confirm coverage questions with your broker.
The straight news version is on Tygart Media.