Brian Focht | Shumaker, Loop & Kendrick Many businesses are adopting artificial intelligence (AI) under the familiar assumption that if something goes wrong, insurance will help absorb the loss. That assumption may need revision. As with cybersecurity and cyber liability insurance a decade ago, the insurance industry is doing something it doesn’t like doing: paying… Continue reading Client Alert: The New AI Coverage Fight: Exclusions, Endorsements, and Denied Claims
Category: Insurance
Insurance Claims Deserve Better Than an Algorithm’s Opinion
Alexander Bein, Andrew Gann, Armina Manning and Sandra Smith Thayer | McGuireWoods Policyholders increasingly turn to artificial intelligence (“AI”) platforms to answer insurance coverage questions. This is risky because: (1) AI models hallucinate legal content at alarming rates; and (2) AI cannot apply nuanced, fact-specific and jurisdiction-specific legal analysis. As OpenAI Foundation recently acknowledged, “ChatGPT… Continue reading Insurance Claims Deserve Better Than an Algorithm’s Opinion
Eighth Circuit Reinterprets “Cosmetic Damage Exclusion” in Property Insurance Claims
Advise & Consult, Inc. Case: Cannon Falls Area Schools, ISD 252 v. The Hanover American Insurance Company (8th Cir. July 27, 2026) Core Issue: Interpretation of policy endorsements excluding “cosmetic damage” caused by hail to standing-seam metal roofs. Key Takeaways Background & Lower Court Ruling Following an April 2022 hailstorm, Cannon Falls Area Schools sustained… Continue reading Eighth Circuit Reinterprets “Cosmetic Damage Exclusion” in Property Insurance Claims
Evaluating the Independence of Insurer-Retained Experts
Advise & Consult, Inc. I. Scrutiny of Insurer-Retained Experts In first-party property litigation, the objectivity of carrier-retained experts—including engineers and technical consultants—is a material factor in evaluating claim determinations. Frequent retention by a single insurer may create financial dependencies that subtly or overtly influence technical findings. II. Indicators of Potential Bias Indicia of carrier influence… Continue reading Evaluating the Independence of Insurer-Retained Experts
Executive Summary: “Wear and Tear” Disclaimers and the Scope of Insurance Appraisal
Advise & Consult, Inc. Overview In property insurance claims, insurers frequently attempt to reject policyholder demands for appraisal by framing causation disputes—specifically, distinguishing between covered storm damage and excluded wear and tear—as unappraisable “coverage questions.” In the majority of U.S. jurisdictions, once an insurer admits there is a covered loss, determining whether specific damage was… Continue reading Executive Summary: “Wear and Tear” Disclaimers and the Scope of Insurance Appraisal