Chaucer And Armilla Launch Vanguard AI With Clearer Cyber Insurance And AI Liability Lines

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Estimated reading time: 3 minutes

Chaucer and Armilla AI launched Vanguard AI on February 10, 2026. This new offering brings together cyber, technology E&O, and AI liability insurance to help reduce disputes when a single incident causes different types of losses. Chaucer supplies the main Cyber and Technology E&O coverage, while Armilla offers a separate AI liability policy backed by Lloyd’s.

Chaucer cyber insurance underwriting and Armilla AI liability branding for Vanguard AI insurance structure

“From a cyber underwriting perspective, the risk isn’t that AI exists, it’s that AI exposure starts to distort coverage lines it was never priced for,” said Piers Tuggey, Head of Cyber at Chaucer. “Vanguard AI reflects a conscious decision to partner rather than stretch cyber policies beyond their original intent.”

Why Insurers Are Separating AI Liability

Insurers are now seeing AI failures that don’t involve breaches or intrusions. Examples include hallucinations, model drift, and mistakes made by automated decisions. These issues can lead to regulatory, financial, or reputational losses. Vanguard AI treats AI liability as its own risk category, which helps protect the pricing and limits of cyber coverage. According to Chaucer, AI exposure can blur the lines of traditional policies.

“By making AI liability explicit and separate, policyholders avoid post-loss debates about whether an AI failure belongs in cyber, tech E&O, or nowhere at all,” said Karthik Ramakrishnan, CEO and Co-Founder of Armilla AI.

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How Claims Allocation Works

Vanguard AI uses set rules to allocate claims when events involve both cyber and AI issues. If a cyber event and AI behavior overlap, claims are divided based on the type of harm. Chaucer’s cyber liability insurance covers losses caused by breaches, such as ransomware, outages, and failures in technology services. Armilla’s AI policy covers losses from model behavior when there is no cyber event, like incorrect outputs, underperformance, or actions by AI agents. The program also includes AI model certification, risk reporting, and access to cybersecurity and legal response partners.

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Limits And Capacity Details

Armilla’s AI liability aggregate limits start at $25 million or more per organization. The release also cites $10 million in Cyber limits. Dedicated AI limits aim to prevent AI losses from eroding cyber and tech E&O towers. The partners position Vanguard AI as explicit digital risk insurance for AI deployments.

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Martin Hinton

Martin Hinton is the Executive Editor and Publisher of Cyber Insurance News and Information. With over three decades of journalism experience across six continents, his work encompasses investigative reporting, documentaries, and coverage of cultural, political, and business news. To learn more about his career, click on his name to visit his LinkedIn page.


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