Why Cyber Insurance Faces New AI Liability Risks

Josephine Wolff on Why Healthcare Must Scrutinize Cyber and AI Coverage Marianne Kolbasuk McGee (HealthInfoSec) • May 12, 2026

Healthcare organizations face growing pressure to reassess cyber insurance coverage as ransomware attacks disrupt patient care and artificial intelligence tools introduce new liability, said Josephine Wolff, professor of cybersecurity policy at the Fletcher School of Tufts University.

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Exclusions, compliance demands and AI-related uncertainty are reshaping insurance decisions, she said.

Insurers have broadened coverage in recent years to address ransomware-related costs, including incident response, business interruption, legal expenses and regulatory reporting, and increasingly, healthcare organizations have sought out those policies, she said.

But healthcare organizations also face growing uncertainty about other coverage issues as AI-driven diagnostic and clinical decision-support tools enter medical environments.

That's because insurers and healthcare providers are assessing how liability should apply when AI systems potentially contribute ...