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-reportedAbout-us page; applies to Founder Shield's brokerage model generally, restated here for this line.

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-reportedGenerative AI Liability Insurance product page; supersedes the general brokerage insurer claim for this line.

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-reportedGenerative AI Liability Insurance product page.

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-reportedProduct 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-reportedGenerative 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-reportedGenerative AI Liability Insurance product page; litigation and ISO statistics are company-reported and not independently verified here.

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-reportedAbout-us and carrier-selection pages describe the general placement process, not a line-specific application form.