Testudo Launches New Insurance Coverage for Liability Risks Created by Generative AI Systems

San Francisco, CA – Testudo, a technology and insurance company focused on covering GenAI risk, has launched a new insurance product to protect enterprises against the financial, reputational and legal fallout if and when their GenAI systems cause harm.

Secured by Lloyd’s of London capacity - with backing from Apollo and other syndicates - Testudo empowers US enterprises to quantify and cover their GenAI exposures with policy limits of up to $8.5 million. Their approach is unique - harnessing proprietary litigation data and other risk signals to accurately assess GenAI liability exposure in the real world. This will allow customers to quickly receive a quote without an invasive technical audit.

Testudo’s launch comes on the heels of the Generative Artificial Intelligence exclusions in Commercial General Liability (CGL) insurance. These exclusions came into effect on January 1, 2026. Testudo’s product addresses these gaps and provides extra coverage for customers deploying GenAI.

“GenAI is changing enterprises at every level. But this change brings new, unknown risks” said George Lewin-Smith, CEO of Testudo. “Business leaders can’t afford to cross their fingers and hope nothing goes wrong. Testudo can help them understand and insure their GenAI risk – transferring liability off corporate balance sheets and allowing enterprises to confidently innovate. Our insurance products will unlock the next wave of GenAI deployment in the economy.”

TESTUDO’S UNIQUE APPROACH TO UNDERWRITING GEN AI RISK

GENERAL: Testudo is backed by Lloyd’s of London A+ Superior rated capacity with up to $8.5 million per Insured.

COVERAGE: Comprehensive liability coverage for GenAI damages - ranging from hallucinations and IP infringement to physical property damage and unauthorized data disclosures.

MODELING: We capture external data and lawsuits in real-time. Our proprietary modeling uses this unique dataset to accurately assess GenAI liability exposure in the real world.

RISK REPORTING: Our proprietary data powers real-time risk scores, GenAI Risk Summaries and Active Liability Monitoring, giving brokers and enterprises the tools to track GenAI exposure instantly.

Dawn Miller, Chief Commercial Officer of Lloyd's and CEO of Lloyd's Americas: “Testudo’s GenAI liability product exemplifies what the Lloyd’s Lab was designed to deliver: developing pioneering insurance solutions for emerging risks. By collaborating with innovators like Testudo, we’re not just creating new products; we’re advancing the market’s ability to assess and price complex new exposures. This product represents the kind of specialist capacity Lloyd’s exists to provide, addressing policyholder needs that didn’t have solutions before.”

Hayley Budd, Innovation Class Leader at Apollo: “At Apollo we recognise the critical role insurance needs to play in helping organisations to manage new and emerging risks. Testudo is tackling one of the biggest challenges in our market today – how to support organisations utilising Generative Artificial Intelligence. There’s a real gap between how fast GenAI is evolving and the availability of fit-for-purpose insurance products, which is why we’re so excited to see this product launch.”

Mark Titmarsh, Head of Insurance at Testudo: “Where there’s risk, there’s insurance. And that’s why Testudo’s unique insurance products will accelerate enterprise GenAI adoption. We serve as the portal between the specialist underwriting expertise of London and advanced technology of the Bay Area - helping businesses deploying GenAI at every level.”

ABOUT TESTUDO

Testudo combines technology and insurance to solve the challenge of GenAI risk. As a participant in the prestigious Lloyd's of London Innovation Lab Cohort 14, Testudo has developed a unique database to model and monitor real-world GenAI exposure. We use this intelligence to underwrite and price GenAI risk. This enables enterprises to transfer liability, unlocking transformational GenAI adoption.