Founder Shield Generative AI Liability Insurance
Founder Shield Generative AI Liability Insurance
Founder Shield is a retail insurance brokerage, described on its site as “the innovation arm of The Baldwin Group,” and places Founder Shield Generative AI Liability Insurance with third-party carriers rather than underwriting the policy itself. 2Company-reported. About-us page; applies to Founder Shield's brokerage model generally, restated here for this line.
Issuing Insurer
Founder Shield says the policy is backed by capacity at Lloyd's of London rated A+ (Superior) by AM Best. It does not name the specific Lloyd's syndicate. 1Company-reported. Generative AI Liability Insurance product page; supersedes the general brokerage insurer claim for this line.
Who It’s For
Founder Shield built this policy for commercial U.S. companies with up to $10 billion in revenue that deploy or use generative AI tools such as ChatGPT, Copilot, Gemini or Claude in their operations, rather than companies that sell generative AI as a standalone product. 1Company-reported. Generative AI Liability Insurance product page.
Coverage Features
Founder Shield says the policy covers five sources of third-party liability from generative AI outputs: financial-loss errors (hallucinated outputs), IP infringement or defamation from AI-generated content, unauthorized disclosure of private data, bodily injury from reliance on an AI output, and property damage from an AI-driven decision. 1Company-reported. Product page; the issued policy and declarations control actual coverage.
Founder Shield says the policy is written on a claims-made-and-reported, excess & surplus (E&S) lines basis, with a duty to defend and defense costs that erode the limit. 1Company-reported. Generative AI Liability Insurance product page.
Founder Shield cites a 140%-plus year-over-year rise in AI-related U.S. lawsuits and says ISO endorsements effective January 1, 2026 explicitly exclude generative-AI losses from standard commercial general liability policies, which it says is why it built a standalone product. 1Company-reported. Generative AI Liability Insurance product page; litigation and ISO statistics are company-reported and not independently verified here.
How to Apply
You request Founder Shield Generative AI Liability Insurance through Founder Shield's website or an insurance advisor rather than binding coverage directly; Founder Shield says its placement team then approaches carriers on the client's behalf. 2,3Company-reported. About-us and carrier-selection pages describe the general placement process, not a line-specific application form.
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Sources
- Generative AI Liability Insurance. Founder Shield; What Is Generative AI Liability Insurance; Who Needs Generative AI Liability Insurance Coverage?; What Does Generative AI Liability Cover? Accessed 2026-09-23.
- About Us. Founder Shield; “Founder Shield is the innovation arm of The Baldwin Group”; company history and mission. Accessed 2026-09-23.
- How Do You Decide Which Carriers to Approach? Founder Shield; FAQ answer on carrier selection: works exclusively with A-rated (AM Best) carriers, matched by industry appetite. Accessed 2026-09-23.
