“AI hasn’t triggered flood of legal malpractice claims, but insurers watching”

An article by Lisa Burden reports that AI hasn’t triggered flood of legal malpractice claims, but insurers watching – Maryland Daily Record (Aug. 25, 2026). The article states:

When lawyers began filing court papers containing fictitious cases generated by artificial intelligence, judges weren’t the only ones paying attention. So were the companies that insure lawyers.

Although some legal malpractice insurers say they have not yet seen a significant wave of claims directly attributable to generative AI, interviews with professionals suggest the industry is quietly preparing for a future in which AI becomes a routine part of legal practice — and potentially a new source of professional liability.

For now, insurers say they’re taking a measured approach. They aren’t broadly raising premiums or excluding AI-related claims from coverage. Instead, they are urging law firms to establish policies governing AI use, protect confidential client information and ensure lawyers independently verify AI-generated work before relying on it.

It quotes one insurer as saying that AI accelerates the “speed and scale” of mistakes.

However, it suggests that: “Lawyers’ professional liability insurance generally pays to defend covered malpractice claims and, when appropriate, indemnify lawyers for covered losses. However, malpractice policies typically don’t cover court-imposed sanctions, disciplinary penalties or fines.”

One theme is that “firms should establish formal AI use policies rather than allowing lawyers and staff determine their own AI practices.”