Category:Product Liability

By: Michael S. Nelson and Nicholas N. Chan

With the growing shift towards artificial intelligence product liability litigation, policyholders should assess their exposure and coverage risks under their existing policies. As previously discussed, plaintiffs are testing whether consumer-facing AI applications should be treated not as traditional services, but as products that would be subject to claims such as design defect, inadequate warnings, and foreseeable misuse. As courts determine these threshold questions for liability purposes, policyholders would benefit from exploring AI-specific coverage to protect against these risks and should be aware of emerging AI-specific exclusions in the marketplace.