Chaucer Group (“Chaucer”), the global specialty (re)insurance group, and Armilla AI (“Armilla”), a specialist in AI liability insurance and risk assessment, today announce the launch of Vanguard AI, a coordinated insurance solution designed to address cyber, technology and AI-related liability within a single, clearly defined framework.
Vanguard AI brings together Chaucer’s primary cyber and technology errors & omissions (E&O) coverage with Armilla’s standalone AI liability insurance. The structure uses predefined allocation rules to clarify how coverage responds when losses span cyber incidents, technology services failures, and AI system behaviour – reducing ambiguity as organisations deploy artificial intelligence at scale.
Under the coordinated structure:
• Chaucer’s Cyber and Technology E&O coverage remains the primary response for breach-driven cyber loss, business interruption, ransomware events, system outages, and technology services liability.
• AI-specific liability is addressed through a standalone policy underwritten by Armilla and backed by Lloyd’s of London, covering loss scenarios driven by AI model behaviour – including erroneous outputs, model underperformance, or AI agent actions – where no cyber event has occurred.
• Dedicated AI aggregate limits of $25 million or more per organisation, alongside $10 million in Cyber limits, help ensure AI-driven losses do not erode traditional cyber or technology E&O capacity.
• Predefined allocation rules govern mixed scenarios, enabling claims to be allocated by harm where incidents span cyber events, technology failures, and AI system behaviour, reducing disputes and claims friction.
The structure is supported by AI model certification, risk and compliance reporting, and access to established cyber security and legal response partners.
Piers Tuggey, head of cyber, Chaucer said: “As AI adoption accelerates, the challenge for insurers is managing the impact of emerging exposures, ensuring they do not distort coverage lines they were never designed or priced to absorb. The result of this partnership is a coordinated structure that preserves underwriting clarity while providing clients with a coherent response where risks overlap.”
Karthik Ramakrishnan, CEO and co-founder, Armilla AI added: “AI liability is rapidly moving from an implicit exposure within cyber and technology policies to a risk that demands dedicated coverage. By making AI liability clear and separate within Vanguard AI, organisations avoid post-loss uncertainty about where an AI-driven failure sits. This structure enables enterprises to engage with AI confidently, knowing that cyber, technology, and AI risks are addressed transparently and in a coordinated way.”