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Generative AI liability insurance in Arkansas

Arkansas has several distinct AI rules: AI-generated images and simulated voices enter the state publicity-right definitions for unauthorized commercial use; an input provider generally owns generated content only if it does not infringe existing rights; and a narrow nonconsensual sexual-deepfake law includes provider or developer liability where safeguards were unreasonable. Keep those claim types separate when reviewing an AI liability quote. 1,2,3,4

What Is Generative AI Liability?

Generative AI liability can help pay covered defense costs and losses when someone claims your AI use caused harm, including infringement or data disclosure. If you use or sell AI outputs, check how the policy fits your role and existing liability coverage. Read the national Generative AI liability guide.

What to Watch for in Arkansas

  • Commercial use of AI likeness or simulated voice is a publicity-right issue

    Act 159 adds AI-generated images to the Arkansas publicity statute’s photograph and likeness definitions and expressly includes a recognizable simulated voice. The amendment concerns unauthorized commercial use and keeps existing transfer and license contracts intact; ask who obtained the likeness, voice, and commercial-use permissions. 1,4

  • Arkansas output ownership depends on rights and contract terms

    Act 927 assigns generated content to the person providing the input or directive only if the output does not infringe existing copyright or other intellectual-property rights. Employee-directed work belongs to the employer within the scope of employment and under its direction and control; model-training ownership also depends on lawful data and no contrary contract. 2,4

  • The deepfake provider claim requires specific facts

    Act 827 separately allows an injured person to sue a provider or developer for damages caused by a violation of the underlying knowing, nonconsensual sexual-deepfake offense. The prompt-generation and reasonable-safeguards conditions apply to an Attorney General action against the provider or developer; they are not listed as elements of the individual claim. A defined telecom, information, or cable provider is excluded for another person’s content. This law concerns a specific intimate-image offense, not ordinary AI output. 3,4

Who Regulates Insurance in Arkansas

Arkansas Insurance Department

The Arkansas Insurance Department licenses resident and nonresident producers and business entities, accepts insurance complaints, and provides links to company and producer license searches. It operates as a division of the Arkansas Department of Commerce. 5,6,10,7

Surplus-lines tax and stamping office

Reported tax rate: 4% when Arkansas is the insured's home state Arkansas's broker filing instructions set a 4% surplus-lines tax. Federal law assigns nonadmitted-insurance regulation and tax to the insured’s home state; for a multistate policy, ask your broker to show the home state and the premium allocation used for the Arkansas filing. Arkansas law requires the contract to disclose that the state's property-and-casualty guaranty protection does not apply. 8,9,11

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Arkansas

  1. Who supplied the prompt or training data, who directed the employee, and what rights or licenses cover the input and generated result?
  2. Does your product generate or commercially use a recognizable person’s image, likeness, or simulated voice, and who authorized that use?
  3. For image-generation services, what safeguards, user controls, and response process exist for nonconsensual sexual deepfakes, and who does the customer agreement make responsible?

Generative AI Liability in Arkansas: FAQ

Does Arkansas make every prompt writer the owner of AI output? 2

No. Act 927’s default is conditioned on the output not infringing existing copyright or intellectual-property rights. It also assigns employee work to an employer only when the use falls within employment duties and occurs under employer direction and control; contracts can change model-training ownership. 2

Can an Arkansas deepfake claim reach a technology provider? 3

An injured person may sue a provider or developer for injury caused by a violation of the underlying § 5-14-139 offense under Act 827 § 16-118-119(b). The substantial-or-entire prompt-generation and no-reasonable-safeguards conditions appear separately in subsection (a) and govern an Attorney General action on the State’s behalf. The individual claim still depends on the offense’s knowing, nonconsensual creation or distribution elements and its defined service-provider exception. 3

Generative AI Liability in Other States

Other Coverage in Arkansas

Sources

  1. Arkansas Act 159 (HB 1071): AI-Generated Likeness and Voice. Arkansas General Assembly; Arkansas Code §§ 4-75-1103, 4-75-1110, 4-75-1112, as amended by Act 159 (approved Feb. 25, 2025); default effective date Aug. 5, 2025. Defines AI-generated image/likeness and simulated voice; service-provider and existing-license provisions. Accessed 2026-09-28.
  2. Arkansas Act 927 (HB 1876): Generative AI Content Ownership. Arkansas General Assembly; Ark. Code § 18-4-101, as enacted by Act 927 (approved Apr. 21, 2025); default effective date Aug. 5, 2025. Input-owner rule subject to preexisting IP rights, lawful training-data condition, employee-work exception and contracts. Accessed 2026-09-28.
  3. Arkansas Act 827 (HB 1529): Deepfake Visual Material. Arkansas General Assembly; Ark. Code §§ 5-14-139 and 16-118-119; approved Apr. 17, 2025 (Act 827). AG action against provider/developer requires prompt-based generation and absent reasonable safeguards; individual injury action is separately authorized; first offense Class A misdemeanor, later offenses Class D felony; specified telecom/info/cable service exception. General effective date Aug. 5, 2025. Accessed 2026-09-28.
  4. 2025 Summary of General Legislation: Effective Date of Acts. Arkansas Bureau of Legislative Research; Official 95th General Assembly session summary, p. 178: acts without an emergency clause or specified effective date took effect August 5, 2025. Accessed 2026-09-28.
  5. Arkansas Insurance Department. Arkansas Insurance Department; Official agency homepage. Accessed 2026-09-28.
  6. Licensing. Arkansas Insurance Department; Licensing Division guidance and state-based systems lookup for Arkansas agent and agency licensees. Accessed 2026-09-28.
  7. File A Complaint. Arkansas Insurance Department; Online complaint filing for insurance providers, including agents and companies. Accessed 2026-09-28.
  8. Surplus Lines Brokers Filing. Arkansas Insurance Department; Current broker filing instructions state that 4% broker tax must be remitted. Accessed 2026-09-28.
  9. 23 CAR § 201-104: Endorsement of contract. Arkansas Code of Rules; Required surplus-lines contract disclosure: no Arkansas P&C Guaranty Act protection and 4% tax collected from insured. Accessed 2026-09-28.
  10. 15 U.S.C. § 8202: Regulation of nonadmitted insurance by insured's home State. U.S. House of Representatives, Office of the Law Revision Counsel; § 8202(a): nonadmitted placement is subject solely to insured's home-State requirements, except as otherwise provided; § 8201 addresses exclusive home-State tax authority. Accessed 2026-09-28.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  13. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  14. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  15. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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