What Does Generative AI Liability Insurance from Founder Shield Cover?
Founder Shield, a retail insurance brokerage, places generative AI liability insurance for U.S. commercial companies with up to $10 billion in revenue that use tools like ChatGPT or Copilot.
Founder Shield Generative AI Liability Insurance · Updated
What Is Founder Shield’s Role in Generative AI Liability Insurance?
Founder Shield is a retail insurance brokerage, described on its site as “the innovation arm of The Baldwin Group,” and places Founder Shield Generative AI Liability Insurance with third-party carriers rather than underwriting the policy itself. 2
Company-reported.About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.
Who Issues Founder Shield Generative AI Liability Insurance?
Founder Shield says the policy is backed by capacity at Lloyd's of London rated A+ (Superior) by AM Best. It does not name the specific Lloyd's syndicate. 1
Company-reported.Generative AI Liability Insurance product page; supersedes the general brokerage insurer claim for this line.
Who Is Founder Shield Generative AI Liability Insurance For?
Founder Shield built this policy for commercial U.S. companies with up to $10 billion in revenue that deploy or use generative AI tools such as ChatGPT, Copilot, Gemini or Claude in their operations, rather than companies that sell generative AI as a standalone product. 1
Company-reported.Generative AI Liability Insurance product page.
Coverage Features of Founder Shield Generative AI Liability Insurance
Founder Shield says the policy covers five sources of third-party liability from generative AI outputs: financial-loss errors (hallucinated outputs), IP infringement or defamation from AI-generated content, unauthorized disclosure of private data, bodily injury from reliance on an AI output, and property damage from an AI-driven decision. 1
Company-reported.Product page; the issued policy and declarations control actual coverage.
Founder Shield says the policy is written on a claims-made-and-reported, excess & surplus (E&S) lines basis, with a duty to defend and defense costs that erode the limit. 1
Company-reported.Generative AI Liability Insurance product page.
Founder Shield cites a 140%-plus year-over-year rise in AI-related U.S. lawsuits and says ISO endorsements effective January 1, 2026 explicitly exclude generative-AI losses from standard commercial general liability policies, which it says is why it built a standalone product. 1
Company-reported.Generative AI Liability Insurance product page; litigation and ISO statistics are company-reported and not independently verified here.
How Do You Apply for Founder Shield Generative AI Liability Insurance?
You request Founder Shield Generative AI Liability Insurance through Founder Shield's website or an insurance advisor rather than binding coverage directly; Founder Shield says its placement team then approaches carriers on the client's behalf. 2,3
Company-reported.About-us and carrier-selection pages describe the general placement process, not a line-specific application form.
Founder Shield Generative AI Liability Insurance Compared
Other Coverage Lines Documented for Founder Shield
Sources for Founder Shield Generative AI Liability Insurance
- Generative AI Liability Insurance. Founder Shield; What Is Generative AI Liability Insurance; Who Needs Generative AI Liability Insurance Coverage?; What Does Generative AI Liability Cover? Accessed 2026-09-23.
- About Us. Founder Shield; “Founder Shield is the innovation arm of The Baldwin Group”; company history and mission. Accessed 2026-09-23.
- How Do You Decide Which Carriers to Approach? Founder Shield; FAQ answer on carrier selection: works exclusively with A-rated (AM Best) carriers, matched by industry appetite. Accessed 2026-09-23.