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Generative AI Liability Insurance in Michigan

Michigan’s Protection from Intimate Deep Fakes Act, effective August 26, 2025, covers realistic, identifiable media that falsely depicts intimate parts or a sexual act. A depicted person may sue over creation or dissemination where the creator or distributor knew or should have known of likely harm, or acted with a specified harmful purpose; the criminal provision adds felony factors such as operating a site or app for the deepfake or posting it online. 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 Michigan

  • Michigan’s civil action can target creation before public posting

    MCL 752.383 allows a depicted individual or representative to sue for nonconsensual creation or dissemination when the person knew or reasonably should have known it would cause physical, emotional, reputational, or economic harm, or created or disseminated it for a listed harmful purpose. The image must realistically depict intimate parts or a sexual act and identify the person. Preserve prompt, output, review, and distribution records because creation and publication are both named. 1

  • Operating a site or app for the image can raise criminal severity

    Michigan’s criminal statute makes a covered intentional intimate deepfake a misdemeanor, with aggravated factors supporting a three-year felony. Listed factors include financial loss, intent to profit, operating a website or app for creating or disseminating the deepfake, website posting, harmful intent, and a prior conviction. If you operate a generative platform, document prohibited uses, user reporting, moderation, and whether the service is designed or used for such content. 1

  • A Michigan victim can seek privacy-preserving court relief

    Under MCL 752.384, a claim accrues when the depicted individual discovers the deepfake; venue may be where either party resides or where the deepfake was produced, reproduced, or stored. Courts must allow confidential filings and may issue relief to maintain a plaintiff’s confidentiality under a pseudonym. Ask how the policy treats emergency injunction response and the costs of confidential litigation. 1

  • Michigan separately prohibits specified deceptive trade practices

    The Michigan Consumer Protection Act prohibits listed unfair, unconscionable, or deceptive methods and representations in trade or commerce. When marketing an AI product, retain support for claims about accuracy, human review, or authorization and distinguish a commercial representation claim from the intimate-deepfake offenses in Act 11. 2

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. 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: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 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 Michigan

  1. Can your platform generate, store, or post realistic intimate depictions of an identifiable individual, and what prevents that workflow?
  2. Do user policies, detection controls, reporting, and moderation logs show how the company responds to harmful prompts and outputs?
  3. Does the quote address Michigan’s civil claims for creation and dissemination, aggravated criminal allegations, and emergency privacy injunctions?

Generative AI Liability in Michigan: FAQ

Does Michigan’s law cover only deepfakes posted publicly? 1

No. The civil cause of action covers specified nonconsensual creation or dissemination. The criminal section also distinguishes conduct and aggravating factors, including website or app operation and posting. 1

Can a Michigan plaintiff keep their identity confidential in a deepfake lawsuit? 1

MCL 752.384 directs courts to allow confidential filings and permits relief maintaining a plaintiff’s confidentiality under a pseudonym. 1

Generative AI Liability in Other States

Other Coverage in Michigan

Sources

  1. Michigan Public Act 11 of 2025: Protection from Intimate Deep Fakes Act. Michigan Legislature; MCL 752.381–752.386: definitions, civil action, discovery accrual, confidential filing, defenses and remedies; immediate effect Aug. 26, 2025. Accessed 2026-09-29.
  2. Michigan Compiled Laws § 445.903: Unfair, unconscionable, or deceptive methods, acts, or practices. Michigan Legislature; Michigan Consumer Protection Act, § 3; specified deceptive representations and practices in trade or commerce. Accessed 2026-09-29.
  3. Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
  4. Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
  5. File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
  6. Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
  7. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
  8. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 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.

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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