QBE North America has launched new cyber insurance coverages targeting risks tied to artificial intelligence, including regulatory compliance and a growing form of cyberattack known as LLMjacking.
The new protections come as businesses face increasing legal scrutiny and operational threats related to the deployment of AI tools. One component of the coverage addresses compliance with emerging regulations, such as the European Union’s AI Act and similar legislation being introduced across multiple US states. The policy offers coverage for defense costs, fines, and penalties stemming from alleged violations of these AI laws.
The second component focuses on LLMjacking, a type of attack where threat actors use stolen credentials to gain access to cloud-hosted large language models. Once inside, they exploit the computing infrastructure powering the models, leading to elevated service charges and potential data risks. QBE’s coverage reimburses businesses for increased fees and costs associated with retraining compromised models.
“AI brings incredible opportunities for businesses as well as new risks that traditional cyber insurance policies may not cover,” said Meredith Brown, head of US cyber and errors & omissions at QBE North America. “QBE is committed to developing and offering insurance solutions that keep pace with rapid innovation like AI, so businesses have the comprehensive protection they need.”
The new offering builds on QCyberProtect, a cyber insurance product QBE introduced in 2023. That policy was designed to serve a broad spectrum of organizations, from mid-sized firms with outsourced IT operations to global companies with complex infrastructure.
QBE's latest move reflects a growing trend among insurers to tailor coverage to specific technology exposures. As more businesses adopt generative AI and machine learning tools, insurers are under pressure to address new forms of risk not typically covered under conventional cyber policies.
The company said the AI-related coverage is now available and forms part of its broader strategy to respond to the shifting cyber risk landscape.
