Lilly Tech Systems
AI Liability & Insurance
Master AI liability and insurance end-to-end. 50 deep dives across 300 lessons covering liability foundations, tort & contractual liability, sectoral liability (medical, AV, financial, hiring, education, defamation, legal practice, cyber), privacy & IP liability, the AI insurance market (Tech E&O, cyber, product liability, specialty AI products from Munich Re, Coalition, Vouch), insurance operations (underwriting, claims, drafting, disputes), and emerging frameworks (EU AI Liability Directive, vendor output indemnification, AGI liability, self-insurance/captives).
All Topics
50 liability and insurance topics organized into 9 categories. Each has 6 detailed lessons with frameworks, contract templates, and case briefs.
Foundations of AI Liability
AI Liability Foundations
Master the foundations of AI liability. Learn the conceptual frameworks, the unique challenges AI poses to traditional liability doctrines, and the four-quadrant liability map.
6 LessonsCausation in AI Cases
Master causation in AI liability. Learn but-for causation challenges, proximate cause for AI-driven harms, intervening causes, multiple sufficient causes, and statistical causation.
6 LessonsDamages in AI Liability
Master damages in AI liability cases. Learn compensatory, statutory, punitive, and equitable damages applied to AI; emotional distress; aggregation issues; and damages computation models.
6 LessonsLiability Allocation Among AI Stakeholders
Master liability allocation. Learn how to allocate liability among model providers, fine-tuners, deployers, integrators, end users, and data providers in the AI value chain.
6 LessonsAI Liability Theories Overview
Master the major AI liability theories. Learn negligence, strict liability, product liability, contract, statutory, and equitable theories applied to AI, and how to choose the right theory.
6 LessonsComparative AI Liability Systems
Compare AI liability across jurisdictions. Learn US vs EU vs UK vs China approaches, the EU Product Liability Directive vs US strict liability, and the AI Liability Directive proposal.
6 LessonsTort Liability
Negligence-Based AI Liability
Master negligence-based AI liability. Learn the duty/breach/causation/damages framework, professional malpractice for AI users, the reasonable AI engineer standard, and practical defenses.
6 LessonsProduct Liability for AI
Master product liability for AI. Learn design defect, manufacturing defect, failure-to-warn, the Restatement (Third) framework, and the software-as-product debate.
6 LessonsStrict Liability for AI
Master strict liability for AI. Learn the abnormally dangerous activity doctrine, statutory strict liability, EU product liability strict regime, and emerging strict liability proposals.
6 LessonsVicarious Liability for AI
Master vicarious liability for AI. Learn employer liability for employee AI use, principal-agent doctrine for AI agents, and the borrowed servant doctrine in cloud AI services.
6 LessonsAI as Independent Tortfeasor
Engage with the theoretical AI-as-tortfeasor debate. Learn the philosophical and legal arguments, electronic personhood proposals, fund-based liability schemes, and current judicial reception.
6 LessonsFailure to Warn in AI Products
Master failure-to-warn for AI. Learn what warnings are adequate, sophisticated user defense, learned intermediary doctrine, ongoing duty to warn, and AI-specific warning patterns.
6 LessonsContractual Liability
AI Vendor Liability
Master AI vendor liability. Learn the vendor obligations, breach of warranty claims, breach of contract patterns, and the typical vendor risk profile across deal sizes.
6 LessonsAI Contract Risk Allocation
Master AI contract risk allocation. Learn the standard risk allocation patterns, indemnity/insurance/limitation interplay, output risk, IP risk, and confidentiality risk.
6 LessonsIndemnification Clauses for AI
Master indemnification clauses for AI. Learn IP indemnification scope, hallucination indemnification, defense control, mitigating factors, caps, and the OpenAI/Microsoft Copyright Shield model.
6 LessonsLimitations of Liability for AI
Master AI limitations of liability. Learn liability caps (multiples, fees-paid), excluded damages (consequential, lost profits), super caps, carveouts, and unenforceability risks.
6 LessonsService Level Agreements for AI
Master SLAs for AI services. Learn uptime SLAs, performance SLAs (latency, accuracy, hallucination rate), credit-based remedies, and the SLA evolution patterns.
6 LessonsSectoral Liability
Medical AI Liability
Master medical AI liability. Learn standard of care for AI-using clinicians, learned intermediary doctrine, FDA preemption, hospital liability, and AI medical device manufacturer liability.
6 LessonsAutonomous Vehicle Liability
Master autonomous vehicle liability. Learn the SAE level framework, manufacturer vs operator liability, NHTSA's role, the Tesla autopilot cases, and Waymo/Cruise litigation patterns.
6 LessonsFinancial AI Liability
Master financial AI liability. Learn fiduciary duties for AI advisors, robo-advisor liability, suitability obligations, AI-driven trading liability, and the model risk management framework.
6 LessonsHiring AI Liability
Master hiring AI liability. Learn Title VII / ADEA / ADA disparate impact for AI, vendor vs employer liability allocation, EEOC enforcement, and the iTutorGroup settlement pattern.
6 LessonsEducational AI Liability
Master educational AI liability. Learn FERPA liability, Title VI/IX implications, AI proctoring litigation, AI grading liability, and the ed-tech vendor liability framework.
6 LessonsDefamation by AI
Master defamation by AI. Learn Walters v OpenAI in detail, the publisher question, Section 230 application, actual malice for AI, and provider defenses including disclaimers.
6 LessonsAI in Legal Practice Liability
Master AI liability for lawyers. Learn ABA Model Rule 1.1 (competence) for AI use, Mata v Avianca sanctions, malpractice exposure, and law firm risk management for AI.
6 LessonsAI Cybersecurity Liability
Master AI cybersecurity liability. Learn SEC cyber disclosure rules, FTC enforcement against insecure AI, breach class actions, the SolarWinds-style claims, and prompt injection liability.
6 LessonsPrivacy & Data Liability
Privacy Liability for AI
Master privacy liability for AI. Learn intrusion upon seclusion, public disclosure, false light, appropriation torts applied to AI, and statutory privacy claims (VPPA, ECPA, wiretap).
6 LessonsBiometric Liability (BIPA, etc.)
Master biometric liability. Learn BIPA (IL) in depth, TX CUBI, WA HB 1493, the Cothron Daubert decision, statutory damages calculation, and the major settlements (Facebook, Clearview).
6 LessonsData Breach Liability for AI Systems
Master AI data breach liability. Learn state breach notification laws, AI-specific breach scenarios (model inversion, training data leak), class action patterns, and breach defense.
6 LessonsGDPR Liability for AI
Master GDPR liability for AI. Learn the up-to-4%-of-turnover penalty regime, regulator enforcement priorities, key AI cases (Clearview, OpenAI Italy), and private right of action under Article 82.
6 LessonsIP Liability
Copyright Infringement Liability
Master copyright infringement liability. Learn direct, contributory, vicarious infringement; statutory damages ranges; willful infringement; secondary liability; and DMCA safe harbors.
6 LessonsPatent Infringement Liability for AI
Master patent infringement liability for AI. Learn direct, induced, contributory infringement; AI-related damage calculations; IPR challenges; and FRAND/SEP issues for AI standards.
6 LessonsTrade Secret Misappropriation
Master trade secret misappropriation for AI. Learn DTSA & UTSA claims, employee mobility cases, model exfiltration cases, prompt extraction claims, and damages including unjust enrichment.
6 LessonsRight of Publicity Violations
Master right of publicity violations. Learn voice cloning cases (OpenAI Sky, Scarlett Johansson), deepfake liability, the Tennessee ELVIS Act, NO FAKES Act, and state law variations.
6 LessonsInsurance Markets
AI Insurance Market Overview
Master the AI insurance market. Learn the global AI insurance landscape, market growth trends, the major carriers, key product categories, and the gap between AI risk and current coverage.
6 LessonsTech E&O Insurance for AI
Master Tech E&O insurance for AI. Learn the standard tech E&O scope, AI-specific endorsements, exclusions to watch, defense costs coverage, and how to procure adequate coverage.
6 LessonsCyber Insurance & AI
Master cyber insurance for AI. Learn AI-specific cyber coverage, prompt injection coverage, model theft coverage, breach response coverage, and the increasing AI-specific exclusions.
6 LessonsProduct Liability Insurance for AI
Master product liability insurance for AI. Learn how product liability policies treat AI, software exclusions, named perils vs all-risk, occurrence vs claims-made, and aggregate limits issues.
6 LessonsSpecialty AI Insurance Products
Master specialty AI insurance products. Learn the specialty AI policies emerging, coverage scope (algorithmic, hallucination, bias), pricing models, capacity, and when to choose specialty over general.
6 LessonsAI Insurance Carriers
Master the AI insurance carrier landscape. Learn Munich Re aiSure, Coalition AI coverage, Vouch AI policies, Lloyd's syndicates, and specialty MGA programs targeting AI.
6 LessonsD&O Insurance & AI Risk
Master D&O insurance and AI risk. Learn AI-related D&O claims, Caremark / Marchand duties for AI oversight, AI-washing securities claims, and the typical D&O policy response to AI risk.
6 LessonsReinsurance Markets for AI
Master reinsurance markets for AI. Learn how reinsurers assess AI risk, treaty vs facultative for AI, retrocession, capacity constraints, and the catastrophic AI risk question.
6 LessonsInsurance Operations
AI Risk Underwriting
Master underwriting AI risk. Learn the application questionnaire (use cases, governance, data sources, eval rigor), risk classification, pricing inputs, and underwriting decision frameworks.
6 LessonsAI Insurance Claims Handling
Master AI claims handling. Learn first notice of loss, coverage analysis for AI claims, reservation of rights letters, defense vs indemnity decisions, and claim resolution patterns.
6 LessonsAI Risk Assessment for Insurance
Master AI risk assessment for insurance. Learn risk modeling for AI, frequency vs severity analysis, accumulation risk, scenario analysis, and the use of AI itself in underwriting.
6 LessonsAI Insurance Policy Drafting
Master AI insurance policy drafting. Learn definitions of 'AI system', insuring agreements for AI, exclusions, conditions, and the model clauses for AI-specific endorsements.
6 LessonsAI Coverage Disputes
Master AI coverage disputes. Learn the recurring AI coverage dispute patterns, the duty to defend in AI cases, allocation between insurers, bad faith claims, and dispute resolution.
6 LessonsSpecialized & Emerging
EU AI Liability Directive
Master the EU AI Liability Directive. Learn the proposal vs withdrawal status, presumption of causality, disclosure of evidence, alignment with Product Liability Directive, and member state implementation.
6 LessonsVendor Indemnification of AI Outputs
Master vendor indemnification of AI outputs. Compare OpenAI Copyright Shield, Microsoft Copilot Indemnity, Google Cloud AI Indemnity, Adobe Firefly Indemnity, and the typical scope and gaps.
6 LessonsAGI Liability Frameworks
Engage with proposed AGI liability frameworks. Learn the AGI policy debates, capability-triggered strict liability proposals, mandatory insurance, fund-based compensation, and AGI safety insurance.
6 LessonsSelf-Insurance & Captive Insurance for AI
Master self-insurance and captives for AI. Learn when to self-insure AI risk, captive structures, single-parent vs group captives, fronting arrangements, and tax considerations.
6 LessonsWhy an AI Liability & Insurance Track?
A single uninsured AI loss can dwarf a year of revenue. This track gives you the practitioner playbook for managing AI liability and procuring matching coverage.
Liability Foundations + Tort + Contract
17 deep dives: liability foundations, causation, damages, allocation, theories, comparative law; tort liability (negligence, product liability, strict liability, vicarious, AI-as-tortfeasor, failure to warn); contract liability (vendor, risk allocation, indemnification, limitations, SLAs).
Sectoral + Privacy + IP Liability
16 deep dives: sectoral liability (medical, AV, financial, hiring, education, defamation, legal practice, cyber); privacy liability (privacy torts, BIPA, breach, GDPR); IP liability (copyright, patent, trade secret, right of publicity).
Insurance Markets
8 deep dives: market overview, Tech E&O, cyber, product liability, specialty AI, AI carriers (Munich Re aiSure, Coalition, Vouch, Lloyd's), D&O, reinsurance.
Operations + Emerging
9 deep dives: insurance operations (underwriting, claims, risk assessment, drafting, disputes); emerging (EU AI Liability Directive, vendor output indemnification, AGI liability, self-insurance & captives).