Lloyd's Syndicates Commit More Capacity to Generative AI Liability Insurance

• Testudo insures enterprises against third party claims arising from financial, legal and reputational harm caused by generative AI systems.
• Atrium and QBE commit capacity of up to $9.25m per insured, alongside lead syndicate Apollo, as insurers increasingly exclude Generative AI risks.

London, Thursday 26th February, 0900 GMT: Lloyd’s Coverholder Testudo has secured additional underwriting support from Atrium and QBE for its Generative AI Liability insurance product, increasing available limits to $9.25 million per insured. The backing expands capacity for enterprises deploying generative AI at a time when there is growing uncertainty around coverage for AI-related risks from traditional liability policies.

The addition of Atrium and QBE strengthens Testudo’s (re)insurance panel, alongside Apollo, and reflects growing underwriting confidence in a new and complex class of risk driven by the rapid adoption of generative AI. As AI-related exclusions, including those based on Verisk wordings, become more common, enterprises are increasingly exposed to litigation and financial loss.

Testudo’s product is designed to respond to third party claims arising from AI-generated outputs, including legal costs and damages, where conventional Commercial General Liability insurance may not apply.

This additional capacity comes as generative AI-related litigation increases by 137% year over year, according to Testudo's proprietary data, and regulatory and legal scrutiny of AI-driven decisions accelerates across sectors including technology, financial services, healthcare, and media. Since joining Lloyd's Lab in 2025, Testudo has grown its syndicate panel to respond to the full scope of standalone Gen AI third-party liability claims.

Mark Titmarsh, Co-Founder and Head of Insurance, Testudo, said: “Lloyd’s has always led with courage when insuring new and emerging risks. We are delighted and honoured to welcome the innovative Atrium and QBE to our (re)insurance panel for our generative AI liability insurance product. Their support reflects a shared commitment to thoughtful, well-structured underwriting approaches that give enterprises greater confidence to adopt generative AI.”

Michael Cuistion, Head of Marine & Energy Liability Atrium, said: “Creating insurance products which truly address the emerging risks of tomorrow is embedded within our approach to underwriting at Atrium.We believe this will deliver real value to businesses that utilise Generative AI, enabling them to trade with confidence.”

Peta Kilian, Senior Underwriter, Innovation, QBE said: "As a leading global insurer, it's our role to support businesses as they navigate evolving technologies and emerging risks. We're pleased to support Testudo's innovative AI liability insurance solution, helping our clients with AI risk scoring and reporting tools, to better detect and evaluate potential liabilities.”

Ian Kerton, UK CEO at Gallagher Re, said: “Gallagher Re is proud to have partnered Testudo to secure this capacity. We are also pleased to have continued supporting Lloyd’s as the premier marketplace for providing innovative insurance coverage.”

Is there standalone insurance for generative AI risk?

Yes. Testudo's Gen AI liability insurance is a standalone policy written on Lloyd's of London paper that responds specifically to third-party claims arising from generative AI outputs, including financial loss, defamation, IP infringement, and data disclosure. Backed by Apollo, Atrium, and QBE, it provides up to $9.25 million per insured where conventional CGL and cyber policies now exclude or do not affirmatively cover AI risks.