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Generative AI Liability Insurance in Maryland

Effective June 1, 2026, Maryland law prohibits knowing or reckless use of a defined deepfake to create materially false election information with specified intent and voter or petition harm; a violation can carry up to five years’ imprisonment or a $5,000 fine. A separate 2026 law makes certain fraudulent uses of AI or a deepfake representation to impersonate someone, create false records, or cause harm a crime and gives victims a civil action for an injunction or other appropriate relief. 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 Maryland

  • Election use depends on both intent and harm

    Maryland Election Law § 16-905 reaches knowing or reckless creation, use, or dissemination of a deepfake to produce materially false information when the actor intends one of the listed election effects and the conduct causes or is intended to cause harm to a voter, potential voter, or petition. The statute includes satire and parody exceptions plus defined media exceptions. Preserve the audience, campaign purpose, disclosures, and review decisions for election-related output. 1

  • Maryland added a private civil remedy for specified AI impersonation

    Under amended Criminal Law § 8-301(f)(2) and (h), a victim of specified knowing, willful, and fraudulent AI or deepfake conduct may sue the person responsible. The conduct includes impersonating or falsely depicting someone with intent to defraud, mislead, or cause harm, or creating or distributing false records for listed harmful or financial purposes. A court may enjoin the conduct or grant other appropriate relief; the provision does not establish liability for every inaccurate model output. 2

  • Exposure can rise with victim count or transaction value

    Maryland’s 2026 amendment sets a felony penalty of up to five years and $10,000 for a § 8-301(f)(2) violation involving one victim, and up to ten years and $15,000 for two or more victims. The act also adds value-tier penalties to specified identity-fraud conduct. If a product can impersonate multiple people or generate false records used in transactions, ask how the proposed policy treats aggregated events, intentional-act exclusions, investigation expenses, and civil defense. 2

Who Regulates Insurance in Maryland

Maryland Insurance Administration

The Maryland Insurance Administration licenses producers and insurers, reviews rates and forms, and investigates complaints about insurance companies and producers. You can use its state lookup or complaint service to check a license or raise an insurance issue. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 3% of gross premiums less returned premiums when Maryland is the insured's home state; excludes risks of Maryland and its political subdivisions When Maryland is the insured's home state, the tax is 3% of gross premiums less returned premiums, except insurance of risks of the State or a political subdivision. For policies effective on or after July 21, 2011, Maryland taxes the entire premium and the broker must charge the tax in addition to premium. Maryland's property and casualty guaranty corporation excludes surplus-lines policies. 6,7

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 Maryland

  1. Could generated audio, video, images, or records be used to impersonate a person or mislead voters, and what controls block or label those outputs?
  2. Do your deployment logs show the intended audience, campaign or transaction context, review, disclosure, and any complaint response?
  3. Does the quote address defense of statutory civil actions and claims involving multiple victims, election content, identity fraud, or intentional conduct?

Generative AI Liability in Maryland: FAQ

Does Maryland’s 2026 law make all deepfake content unlawful? 1,2

No. The election provision applies to defined conduct involving materially false election information, specified intent, and voter or petition harm, and includes exceptions. The identity-fraud provision requires specified knowing, willful, and fraudulent conduct and listed purposes. 1,2

Can a Maryland victim sue over AI impersonation? 2

The 2026 amendment authorizes a victim of conduct that would violate Criminal Law § 8-301(f)(2) to bring a civil action; the court may issue an injunction and grant other appropriate relief. 2

Generative AI Liability in Other States

Other Coverage in Maryland

Sources

  1. Chapter 444, Laws of Maryland 2026: Election Law – Election Disinformation. Maryland General Assembly; Adds Election Law §§ 2-110 and 16-905; definitions, remedies, exceptions, offense and effective date of June 1, 2026. Accessed 2026-09-29.
  2. Chapter 445, Laws of Maryland 2026: Criminal Law – Identity Fraud – Artificial Intelligence and Deepfake Representations. Maryland General Assembly; Amends Criminal Law § 8-301, especially definitions, subsections (f)(2), (g)(5), and (h): AI/deepfake conduct, penalties, and civil remedy. Accessed 2026-09-29.
  3. Maryland Insurance Administration. Maryland Insurance Administration; Homepage and consumer contact. Accessed 2026-09-28.
  4. Insurance License Lookup. Maryland Insurance Administration; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Maryland Insurance Administration; State complaint process and contact. Accessed 2026-09-28.
  6. Md. Code, Insurance §3-324. Maryland General Assembly; Insurance §3-324(a)-(b), (d)-(f): government-risk exclusion; 3% of gross premiums less returns; entire-premium home-state basis from July 21, 2011, with tax charged in addition. Accessed 2026-09-28.
  7. Maryland Insurance Article (2026). Maryland General Assembly; Insurance §9-303(5), (7): surplus-lines and unauthorized insurers excluded from property and casualty guaranty subtitle; 2026 Insurance Article PDF. 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. 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.
  14. 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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