The AI E&O Wave: When Algorithms Become the Defendant
Westfield Specialty Insights
Generative AI tools now sit inside the daily workflow of law firms, accounting practices, medical groups, financial advisors, and design firms. They draft, analyze, recommend - and occasionally hallucinate. In 2026, the Miscellaneous Professional Liability (MPL) market is seeing the first sustained wave of claims tied directly to AI-generated work product, and underwriters are recalibrating fast.
In this episode:
00:00 - Cold open: a real (anonymized) AI hallucination claim scenario
02:30 - Why MPL is the policy form where AI exposure lives
06:00 - Which professions are seeing the steepest rate movement and why
10:15 - What underwriters are now asking on renewal applications
14:30 - The contract-language trap: when "human review" clauses do and don't help
18:00 - Broker playbook: 4 questions to ask every professional services client before bind
21:00 - Where Westfield sees the AI E&O market heading in the next 18 months
Key takeaways:
- AI exposure is not a separate policy. It lives in MPL today, and exclusions are starting to appear on renewals.
- The professions most exposed are not always the obvious ones; downstream consulting and advisory work is a hotspot.
- Documented human-in-the-loop processes are the single biggest underwriting differentiator right now.
Related reading: The MPL Minute series at solutions.westfieldspecialty.com/insights
Brokers can request a quote or talk to a Westfield Specialty MPL underwriter at solutions.westfieldspecialty.com.
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