Generative AI liability insurance in Connecticut

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 Connecticut

• The content-provenance rule has a high threshold and a B2B carveout

  Beginning Oct. 1, 2026, a covered provider is a person who creates, codes, or otherwise produces a machine-learning system that generates images, audio, or video, has more than one million users per month, and is publicly accessible to Connecticut residents for personal use; government agencies are excluded. To the extent commercially and technically reasonable, the provider must include provenance data in covered audio, image, or video content the system creates or materially alters and make that data difficult to tamper with, remove, or disassociate. The statute does not apply that duty to business-to-business use, sale, licensing, or distribution of a generative AI system, among its listed exceptions. ¹

• Employment tools follow a different timetable

  The definition covers technology that processes personal data and generates an output that is a substantial factor in making or materially influencing a listed Connecticut employment decision; incidental use and purely descriptive, diagnostic, or statistical information not relied on are excluded. For systems deployed in Connecticut on or after Oct. 1, 2027, developers must provide information needed for deployer duties when the system was marketed or supplied to materially influence an employment decision. A binding contract may have the developer assume specified deployer duties under §§ 9 and 10, which the contract must clearly identify. ¹

• Profiling and employee data need separate treatment

  Effective July 1, 2026, Connecticut’s minors’ privacy law requires a controller offering an online service, product, or feature to minors to conduct an impact assessment if it engages in profiling based on their personal data. The assessment must describe purpose, intended use cases, deployment context, and benefits when profiling is for decisions with legal or similarly significant effects; it must also assess reasonably foreseeable heightened risks to minors. If your AI product profiles minors, document the covered service, data, outputs, and safeguards for that assessment. ²

Who Regulates Insurance in Connecticut

Connecticut Insurance Department

The Connecticut Insurance Department licenses insurance producers and companies, oversees insurers and regulated insurance activity, and investigates insurance complaints. Its complaint and license-search services let you raise an issue or check an insurance professional or company. ^3,4,5

• Regulator website
• License lookup
• File a complaint
• Phone: (800) 203-3447

Surplus-lines tax and stamping office

Reported tax rate: 4% of gross premium when Connecticut is the home state When Connecticut is the insured’s home state, surplus-lines tax is 4% of gross premium; certain state and local government insureds are exempt, and broker or policy fees are not part of the premium-tax base. Connecticut’s required notice says these policies are outside the state guaranty association. Most placements require three declinations or an export-list qualification; an exempt commercial purchaser may qualify for the federal § 8205 search exception after disclosure and a written request. ^6,7,8

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 Connecticut

1. Does your system serve consumer personal use above the one-million-user threshold, or is it a business-to-business model/API that falls within the statutory exception?
2. Will computed outputs materially influence an employment decision in Connecticut after October 1, 2027, and which party has contracted to perform the developer or deployer duties?
3. Show the broker the system’s consumer, workforce, and data-processing roles separately; ask what policy language addresses privacy, discrimination, statutory defense, and contractual allocation.

Generative AI Liability in Connecticut: FAQ

Generative AI Liability in Other States

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Delaware
• District of Columbia
• Florida

Other Coverage in Connecticut

Sources

1. Connecticut Public Act 26-15, An Act Concerning Online Safety. Connecticut General Assembly; Public Act 26-15, §§ 7–13, pp. 15–19, and § 15, pp. 27–29: employment technology definitions; developer information and deployer notices, their exceptions, contract provision, and effective/applicability dates; covered-provider definition and provenance scope/exceptions. AI sections effective Oct. 1, 2026; §§ 8–10 duties apply to deployments on or after Oct. 1, 2027. Accessed 2026-09-28.
2. Connecticut General Statutes, Chapter 743jj: Data Privacy and Security. Connecticut General Assembly; 2026 Supplement, § 42-515(31) (definition of profiling) and §§ 42-529a–42-529b, especially § 42-529b(b) (profiling impact assessment for a service offered to minors); P.A. 25-113 §§ 15–16, effective July 1, 2026. Accessed 2026-09-28.
3. Connecticut Insurance Department. Connecticut Insurance Department; Official Department homepage; mission and department resources. Accessed 2026-09-28.
4. Licensing. Connecticut Insurance Department; Department licensing resource landing page; links to state agent and company license lookup. Accessed 2026-09-28.
5. Ask a Question or File a Complaint. Connecticut Insurance Department; Online complaint form and consumer affairs helpline. Accessed 2026-09-28.
6. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Current tax rate, tax base and exemptions, diligent-search rules, guaranty-fund notice. Accessed 2026-09-28.
7. FAQs: Surplus Lines Brokers. Connecticut Insurance Department; Question on surplus-lines notice states Connecticut Insurance Guaranty Association does not cover these policies. Accessed 2026-09-28.
8. 15 U.S.C. § 8205: Streamlined application for commercial purchasers. U.S. House of Representatives, Office of the Law Revision Counsel; Broker's due-diligence search exception for an exempt commercial purchaser requires prior disclosure that admitted-market insurance may offer greater protection/regulatory oversight and the purchaser's subsequent written request for nonadmitted placement. Accessed 2026-09-28.
9. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.