Mayflower Specialty, Ltd., a New York-based managing general agent, and Hadron, a multinational specialty carrier, have launched the first dedicated affirmative artificial intelligence liability program in the United States.
Underwritten by Mayflower and issued through Hadron, these policies provide explicit coverage across the full management-liability triad: errors and omissions (E&O), employment practices liability (EPL), and directors and officers (D&O) coverage.
According to McKinsey’s 2025 State of AI report, 88% of organisations have integrated AI into at least one business area, yet traditional insurance frameworks have lagged behind.
Many existing policies, written before the rise of enterprise AI, either fail to mention AI-specific threats or actively exclude them.
Furthermore, as SEC mandates regarding AI risk disclosures become more stringent, executives and board members encounter personal liability for governance choices that current coverage fails to protect.
“Every major technology wave has created a new class of liability, and the underwriters who showed up early with genuine standards defined that market for a generation,” stated Jeremy Epstein, Founder and Chief Executive Officer of Mayflower Specialty. “Most enterprises are already carrying AI liability on their own balance sheets without realizing it. Litigation is compounding, regulation is hardening, and affirmative capacity is almost nonexistent. Mayflower was built to close that gap.”
Coverage is structured as affirmative grants for management liability, employment practices, and professional liability arising from AI deployment, paired with a difference-in-conditions and excess layer that drops down where legacy policies are silent, sub-limited, or exclusionary.
The AI liability gap can be closed by risk managers without restructuring core placements. Mayflower underwrites AI-specific risks including model bias, drift, and hallucinations using an auditable scoring engine aligned with NIST and ISO standards.
Pete Buccola, Group Chief Underwriting Officer of Hadron, said: “Emerging risks entail, on the one hand, a need to limit exposure; and on the other hand, an opportunity to thoughtfully consider product and an underwriting approach to solve the needs of consumers.
“Jeremy and his team at Mayflower have used their AI domain expertise and D&O product knowledge to solve a massive coverage gap in the market through a proprietary coverage form, disciplined pricing, and innovative risk selection approach.”
The program is further supported by institutional reinsurance partners, with the placement structured by Aon Reinsurance Solutions.
