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Generative AI Liability Insurance in South Carolina

South Carolina Code § 16-15-332, enacted in 2025, prohibits intentional dissemination of an intimate image or digitally forged intimate image without the depicted person’s effective consent. A person’s consent to creating an image, or prior disclosure to someone else, does not itself establish consent to the defendant’s dissemination; penalty levels depend on intent to cause harm or profit and whether the offense is repeated. A separate 2025 child-image statute includes computer-generated images depicting sexually explicit content and does not require the depicted minor to actually exist. 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 South Carolina

  • South Carolina’s offense expressly names digitally forged images

    The statute defines a digitally forged intimate image as an identifiable person’s intimate image that appears to a reasonable person indistinguishable from an authentic visual depiction. The offense is intentional dissemination without effective consent, with knowledge or reason to know of the privacy circumstances. It is a state-specific risk for services that generate or distribute realistic intimate likenesses, but it does not regulate ordinary AI output generally. 1

  • Creation permission is not distribution permission

    South Carolina says consent to creation does not establish effective consent to dissemination, and prior disclosure by the depicted person to someone else is not enough either. Capture the scope of permission, authorized recipients, and any downstream licensing separately. A broad agreement to use a service should not be treated as proof of consent to publish a specific intimate depiction. 1

  • The penalty changes with harm, profit, and repeat conduct

    For an offense intended to cause physical, mental, economic, or reputational harm, or committed for profit, a first violation is a felony carrying up to $5,000 or five years, or both; a second or later violation after an intervening conviction carries up to $10,000 or five to ten years. Other first violations are misdemeanors, while repeat violations can become felonies. Ask how the policy handles allegations of multiple images and intent-based exclusions. 1

  • A separate child-image offense includes computer-generated depictions

    South Carolina Act 57 added § 16-15-390, which covers a visual depiction that may be a computer-generated image and depicts a minor in sexually explicit conduct, activity, or nudity, when the depiction is obscene. The statute says the depicted minor need not actually exist. This offense is distinct from the morphed-image provisions in other sections; assess generated outputs involving minors separately from the adult intimate-image dissemination law. 2

Who Regulates Insurance in South Carolina

South Carolina Department of Insurance

The South Carolina Department of Insurance licenses and regulates insurance companies and producers and accepts complaints involving entities it licenses and policies incepted in South Carolina. Its consumer page links to the online complaint form and explains limits on the Department’s authority. 3,4,5

Surplus-lines tax and stamping office

Reported tax rate: 6% blended broker premium tax: 4% state plus 2% municipal SCDOI’s January 2026 instructions set a 6% blended surplus-lines broker premium tax: 4% state and 2% municipal; the Department collects both and the Municipal Association of South Carolina allocates the municipal share. The filing system also asks brokers to identify one to three insurers that declined the indicated coverage; check the policy notice for any guaranty-association disclosure. 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 South Carolina

  1. Does your service generate or distribute intimate depictions that could be indistinguishable from an authentic image of an identifiable person?
  2. Can you demonstrate consent for creation and separate consent for each intended disclosure or recipient?
  3. Does the quote address South Carolina’s intent-based and repeat-offense exposure, alongside civil privacy or publicity claims?

Generative AI Liability in South Carolina: FAQ

Does South Carolina’s law cover every AI-generated likeness? 1

No. The statute defines intimate and digitally forged intimate images and prohibits their intentional dissemination without effective consent under the specified privacy and knowledge conditions. 1

Does permission to create a South Carolina intimate image authorize sharing it? 1

No. The statute expressly says consent to creation alone is not effective consent to dissemination, and prior disclosure to another person does not establish consent to the accused person’s later distribution. 1

Generative AI Liability in Other States

Other Coverage in South Carolina

Sources

  1. South Carolina Code § 16-15-332: Disseminating Intimate Images Without Consent. South Carolina Legislature; § 16-15-330 definitions and § 16-15-332 elements, consent rules, exceptions, and penalties; 2025 Act No. 37, effective May 12, 2025. Accessed 2026-09-29.
  2. South Carolina Act No. 57 (2025), S. 28: Obscene Visual Representations of Child Sexual Abuse. South Carolina General Assembly; Enrolled and ratified Act No. 57, signed May 22, 2025; adds S.C. Code § 16-15-390, including computer-generated images and a rule that the depicted minor need not actually exist. Accessed 2026-09-29.
  3. south-carolina insurance regulator. State insurance regulator; Official home and consumer services pages describe regulator scope. Accessed 2026-09-28.
  4. SCDOI Online Services. State insurance regulator; General Public offers Licensee Lookup for licensed individuals and insurers. Accessed 2026-09-28.
  5. SCDOI Consumer Services. State insurance regulator; Complaint process and stated authority covers licensed entities and policies incepted in SC; online complaint form is linked. Accessed 2026-09-28.
  6. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, January 26 2026 memo: 6% blended rate, 4% state plus 2% municipal; DOI collects both and MASC allocates municipal portion. Accessed 2026-09-28.
  7. 2026 Surplus Lines Filing Instructions. South Carolina Department of Insurance; Pages 1–2, Jan. 26, 2026 instructions: broker filing due-diligence field requires one to three named insurers declining the indicated coverage. 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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