NEW YORK, June 25 — Mayflower Specialty, Ltd., a New York-based managing general agent, and Hadron, a multinational specialty carrier modernizing the delegated authority market, today launched the first dedicated affirmative artificial intelligence liability program in the United States. Issued by Hadron and underwritten by Mayflower, policies provide explicit coverage across the full management-liability triad: directors and officers (D&O), employment practices liability (EPL), and errors and omissions (E&O) for enterprise companies deploying AI.
With 88 percent of organizations now using AI in at least one business function, according to McKinsey’s 2025 State of AI report, existing insurance policies have not kept pace. Most were written before enterprise AI existed and are silent on AI-specific risks or actively exclude them. As SEC disclosure requirements for AI risk harden, board directors and executives face personal liability for AI governance decisions that existing coverage does not address.
“Every major technology wave has created a new class of liability, and the underwriters who showed up early with genuine standards defined that market for a generation,” said Jeremy Epstein, Founder and Chief Executive Officer of Mayflower Specialty. “Most enterprises are already carrying AI liability on their own balance sheets without realizing it. Litigation is compounding, regulation is hardening, and affirmative capacity is almost nonexistent. Mayflower was built to close that gap.”
Coverage is structured as affirmative grants for management liability, employment practices, and professional liability arising from AI deployment, paired with a difference-in-conditions and excess layer that drops down where legacy policies are silent, sub-limited, or exclusionary. Risk managers can close the AI liability gap without restructuring core placements. Mayflower underwrites AI-specific risks including model bias, drift, and hallucinations using an auditable scoring engine aligned with NIST and ISO standards.
“Emerging risks entail, on the one hand, a need to limit exposure; and on the other hand, an opportunity to thoughtfully consider product and an underwriting approach to solve the needs of consumers,” said Pete Buccola, Group Chief Underwriting Officer of Hadron. “Jeremy and his team at Mayflower have used their AI domain expertise and D&O product knowledge to solve a massive coverage gap in the market through a proprietary coverage form, disciplined pricing, and innovative risk selection approach.”
The program is further supported by institutional reinsurance partners, with the placement structured by Aon Reinsurance Solutions.