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Generative AI liability insurance in Delaware

Delaware’s Personal Data Privacy Act applies to qualifying businesses and processors handling personal data about residents in an individual or household context. It requires heightened-risk assessments for profiling and sensitive-data processing, consumer rights, and reasonable security. It does not treat every employee-data workflow as covered consumer processing, so classify the data and role before asking what a policy or customer contract must address. 1,2

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 Delaware

  • Check the processing threshold before applying the law

    For a person doing business in Delaware or targeting residents, the current § 12D-103 threshold is either at least 35,000 consumers’ data in the preceding calendar year, excluding data processed solely to complete a payment transaction, or at least 10,000 consumers’ data plus more than 20% of gross revenue from personal-data sales. Covered processors also have duties. Count each AI workflow under the correct statutory limb before treating the Act as applicable. 2,1

  • AI profiling can trigger an assessment

    Delaware defines profiling as automated processing that evaluates or predicts personal aspects such as economic situation, health, reliability, behavior, or location. Under current § 12D-108, a controller that processes at least 100,000 consumers’ data, excluding data processed solely to complete a payment transaction, must assess specified heightened-risk activities, including sensitive-data processing and profiling that presents enumerated consumer-harm risks. Check the payment-only exclusion, activity, and controller role before treating an AI score as covered. 1,2

  • Do not merge consumer and workforce use cases

    Delaware does not categorically exclude every employee or workforce record. Section 12D-102(8) excludes a resident acting in a commercial or employment role only when the person’s communications or transactions with the controller occur solely within that role. Separately, § 12D-103(c)(11)(a) excludes data collected and used within an applicant, employee, agent, or contractor role. For mixed consumer and workforce AI, classify the person’s context and the use of each dataset before applying the Act. 2,1

Who Regulates Insurance in Delaware

Delaware Department of Insurance

The Delaware Department of Insurance licenses and regulates insurers and insurance producers, reviews regulated insurance activity, and handles complaints. Its consumer division can help you raise an insurance concern and its services page links to official license searches. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premium, less return premium, when Delaware is the home state When Delaware is the insured’s home state, its 3% surplus-lines premium tax applies to the entire premium of a multistate policy, less returned premiums and excluding federal and state taxes and examination fees. Ask the surplus-lines broker to confirm the home-state determination and tax calculation, and separately explain how exposures are allocated in the required reports; those allocations do not reduce the premium subject to Delaware’s tax. 6,7

Providers With Documented State Licenses

These providers publish a national listing for Generative AI liability; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Delaware. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • RiskCubeRiskCube Insurance Services, LLCInsurance producer · checked 2026-09-28RiskCube’s license page, effective February 11, 2026, lists property-and-casualty producer/broker licenses in California and Delaware and names NPN 21694336. The company says it is expanding its licensing footprint; no other states are listed. 13

Questions to Ask Before You Buy in Delaware

  1. How many Delaware consumer records do you process, and are you acting as a controller, processor, or both for each AI workflow?
  2. Does your AI profile consumer health, economic status, reliability, behavior, or location, or process sensitive data; where are the assessment and consumer-rights records?
  3. Ask the broker to compare your controller-processor contracts and data flows with the quote’s privacy, security, regulatory-claim, and vendor-risk provisions.

Generative AI Liability in Delaware: FAQ

Does Delaware’s privacy law apply to every company that uses AI on resident data? 2,1

No. It has processing thresholds and role rules, and its consumer protections principally concern residents acting in an individual or household context. Covered processors also have obligations; determine whether your business meets the statutory thresholds before drawing a conclusion. 2,1

What AI use should prompt a Delaware data-protection assessment? 1,2

The current statute includes heightened-risk processing such as profiling and sensitive-data processing. Profiling includes automated evaluation or prediction of personal characteristics; the exact use, threshold, and controller role still matter. 1,2

Generative AI Liability in Other States

Other Coverage in Delaware

Sources

  1. Delaware Code, Title 6, Chapter 12D: Personal Data Privacy Act. Delaware General Assembly; Current 6 Del. C. §§ 12D-102(8), 12D-103(a), (c)(11)(a), 12D-106 and 12D-108 (current text effective until Jan. 1, 2027): role-only consumer definition and role-context data exception; 35,000-count payment-transaction exclusion; separate 10,000-plus-sales-revenue limb; 100,000-consumer assessment threshold excluding payment-only data; future amended text distinguished. Accessed 2026-09-28.
  2. Delaware Personal Data Privacy Act: Frequently Asked Questions. Delaware Department of Justice; Delaware DOJ FAQ, applicability, household/employment scope, controllers/processors, assessment obligations, rights, and enforcement; law effective Jan. 1, 2025; 35,000 consumers or 10,000 consumers plus >20% revenue from data sales. Accessed 2026-09-28.
  3. Delaware Department of Insurance. Delaware Department of Insurance; Official Department homepage and regulatory resources. Accessed 2026-09-28.
  4. Services. Delaware Department of Insurance; Department service directory links to the state insurance licensee search. Accessed 2026-09-28.
  5. Consumer Services. Delaware Department of Insurance; Complaint filing and consumer assistance; publishes Consumer Services phone. Accessed 2026-09-28.
  6. Surplus Lines Bulletin 22. Delaware Department of Insurance; Surplus Lines Bulletin 22 (October 2025; printed day is blank), reproducing 18 Del. C. § 1925: home-state tax treatment, all premium on multistate policy if Delaware is home state, 3% rate, and exclusion of federal/state taxes and examination fees from gross premium. Accessed 2026-09-28.
  7. Delaware Code, Title 18, §§1923–1925. Delaware General Assembly; §1923(a)(1),(12) home-state verification and allocation records; §1924(b)(3)–(6) separate premium reporting; §1925(b)–(c) 3% tax, deductions/exclusions and full multistate premium when Delaware is home state. Accessed 2026-09-28.
  8. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. Licenses & Disclosures. RiskCube; Property & Casualty Producer/Broker Licenses; February 11, 2026 version. Accessed 2026-09-16.
  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.

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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