When an AI agent moves through your network without triggering a conventional security event, will your Stand-Alone Cyber Policy respond? This template helps you audit your policy language for coverage gaps that autonomous AI systems might create.
Purpose of This Template
Use this audit if your organization deploys or plans to deploy AI agents with system access, or when renewing cyber coverage in 2025 and beyond. The template identifies specific policy provisions that may not respond when AI agents cause losses through autonomous decision-making rather than traditional unauthorized access.
Aon's forecasts suggest nearly 20% of cyberattacks will involve generative AI by 2027. Your current policy language was likely written for human attackers and conventional malware, not for authorized agents that exploit vulnerabilities independently.
This audit covers three critical areas: triggering event definitions, liability assignment, and Business Interruption Coverage conditions. Complete it before your renewal negotiations, and use the findings to request manuscript endorsements where standard language falls short.
Prerequisites
Before starting this audit, gather:
- Your current Stand-Alone Cyber Policy declarations page and full policy wording
- Any Cyber Endorsements attached to property or liability policies
- A list of AI systems your organization has deployed or plans to deploy with network access
- Documentation of what permissions these AI agents hold (read-only, write access, system administration rights)
- Your broker's contact information for follow-up questions on manuscript language
You'll also need input from your security team on how AI agents authenticate and what access controls govern their behavior.
The Audit Template
Section 1: Triggering Event Definitions
Review your policy's insuring agreement for language that defines when coverage responds. Copy the exact wording into the first column, then assess whether it captures AI-driven scenarios.
Policy Provision: [Paste exact language from your policy's Section I or similar]
Does it require "unauthorized access"? ☐ Yes ☐ No ☐ Unclear
Does it require a "malicious actor"? ☐ Yes ☐ No ☐ Unclear
Does it define "computer attack" or "security event" in a way that excludes authorized agents? ☐ Yes ☐ No ☐ Unclear
Gap identified: If your policy requires unauthorized access or a malicious external actor, it may not respond when an AI agent you deliberately granted system access exploits a vulnerability on its own. Consider a scenario where you deploy an agent to patch security holes, but the agent instead identifies and exploits those holes to access sensitive data. No credential theft occurred. No external attacker existed. Your policy may deny the claim.
Recommended language to request: "Coverage responds to losses arising from any Security Event, including but not limited to events caused by AI agents operating within granted permissions, provided such events result in Data Restoration costs, Business Interruption, or third-party liability."
Section 2: Liability Assignment
Locate your policy's liability coverage section, typically covering third-party claims for privacy violations or network security failures.
Policy Provision: [Paste language from liability insuring agreement]
Does it cover liability for "your" actions? ☐ Yes ☐ No ☐ Defines "you" narrowly
Does it exclude liability for intentional acts? ☐ Yes ☐ No ☐ Has knowledge requirement
Gap identified: When an AI agent acts autonomously, courts haven't settled whether the organization "intended" the harmful outcome. If your agent independently decides to expose customer data while performing its assigned task, your insurer may argue you intended to grant the agent authority, therefore you intended the consequence.
Recommended language to request: "For purposes of liability coverage, autonomous decisions made by AI agents operating within granted permissions shall not be deemed intentional acts by the Named Insured, provided the Named Insured did not specifically instruct or configure the agent to cause the resulting harm."
Section 3: Business Interruption Conditions
Find your Business Interruption Coverage section and identify the triggering conditions.
Policy Provision: [Paste BI triggering language]
Does it require a "disruption" or "suspension" of operations? ☐ Yes ☐ No
Does it require "inability to access" systems? ☐ Yes ☐ No
Does it cover degraded performance without full suspension? ☐ Yes ☐ No ☐ Unclear
Gap identified: AI agents can cause business interruption through performance degradation rather than system shutdown. Consider an agent that misconfigures database queries, slowing transaction processing by 80% without taking systems offline. Traditional BI language requiring "suspension" or "inability to access" may not respond.
Recommended language to request: "Business Interruption Coverage responds when AI agent actions cause Measurable Degradation of system performance, defined as reduction in transaction processing capacity, system response time, or operational throughput that materially impairs business operations, whether or not systems remain technically accessible."
Section 4: Exclusions Review
Check for these common exclusions that may inadvertently bar AI-related claims:
War Exclusion: Does it exclude losses from "hostile or warlike action"? ☐ Yes ☐ No
Gap: If a nation-state deploys AI agents that autonomously spread through infrastructure, your insurer may invoke this exclusion even without conventional military action.
Insurer Consent Requirement: Must you obtain consent before incurring forensic or legal costs? ☐ Yes ☐ No
Gap: AI incidents may require immediate forensic response before you can reach your insurer. Verify your policy includes reasonable time allowances for emergency response.
Prior Acts Exclusion: Does coverage exclude losses from events that began before your policy period? ☐ Yes ☐ No
Gap: AI agents can operate for extended periods before detection. If an agent began unauthorized activity 13 months ago but you only discovered it this month, your Claims-Made Policy may deny coverage.
Customizing This Template
Adapt this audit to your organization's AI deployment plans:
If you're deploying AI agents with read-only access: Focus on liability provisions. Your primary risk is the agent accessing and exposing data it was authorized to read.
If you're deploying AI agents with write access or system administration rights: Prioritize triggering event definitions and Business Interruption conditions. These agents can cause operational disruption without triggering conventional security events.
If you're in a regulated industry: Add a section reviewing whether your policy covers regulatory penalties arising from AI agent actions. Many policies exclude fines and penalties, but some cover Defense Costs for regulatory proceedings.
If your organization uses third-party AI platforms: Verify whether your policy covers losses when the AI provider's agent causes harm to your systems or data. This may require Contingent Business Interruption language.
Validation Steps
Schedule a call with your broker within 48 hours of completing this audit. Don't wait until renewal. Share the specific gaps you identified and the manuscript language you need.
Request written confirmation from your insurer that your proposed scenarios would trigger coverage under current policy language. If they won't confirm in writing, you've identified a coverage gap.
Document your AI deployments in a format your insurer can review. Include system access levels, authentication methods, and operational constraints. Insurers reviewing policy language for AI risks, including MSIG, are asking for this documentation during Underwriting Questionnaire review.
Review your Application Fraud Warranty to ensure you haven't misrepresented your AI deployments. If you answered "no" to questions about automated systems or third-party access, and you've since deployed AI agents, notify your insurer immediately.
Test one scenario end-to-end with your broker. Pick your highest-risk AI deployment, describe a realistic loss scenario, and ask your broker to walk through exactly which policy provisions would respond and which might create disputes.
The global cyber insurance market reached nearly $15 billion last year and is expected to reach roughly $28 billion by 2030, according to Munich Re estimates. That growth is driven partly by emerging risks like AI agents. Your current policy language wasn't written for these risks. This audit identifies where it breaks down, so you can fix the gaps before you file a claim.
