Cyber Policy Gaps and Expectation Discrepancies
According to Tim Johnson, partner and head of the insurance practice at Browne Jacobson, the most common source of disputes between insurers and policyholders is the gap between expectation and reality. While cyber policies often bundle covers from forensic IT to cyber extortion, businesses frequently fail to purchase specific extensions they ultimately need, such as cyber business interruption. Johnson noted that business owners often treat buying a cyber policy as a simple checklist task, assuming they are fully covered without taking the time or advice to ensure the policy matches their operational exposures.
Artificial Intelligence Liability and Customisation Complications
The emergence of AI introduces complex new liabilities that blur the traditional lines between software developers and deployers. Philip James, partner and head of the UK data, privacy and cybersecurity group at Browne Jacobson, warned that emerging technologies bring changing responsibilities and unfamiliar complexities. Because businesses frequently customise AI tools or build on top of vendor platforms, establishing liability when an incident occurs becomes difficult. Furthermore, as AI models adapt through user prompts and their own characteristics, insurers face unique challenges in determining coverage, leading legal experts to advise brokers to closely examine client AI usage and mid-term policy adjustments.