Crosby to Insure Its Agents for Legal Liability

2026-07-28 · Source: Artificial Lawyer · Field: Legal & Regulatory — Legal Technology (LegalTech), Compliance & Risk Management, Regulatory Affairs & Government Relations · Depth: Intermediate, short

Summary

NewMod law firm Crosby is implementing professional liability insurance for its AI agents, enabling them to perform autonomous legal work. This initiative, described by CEO Ryan Daniels, signifies a shift from traditional models where human lawyers review every output, moving towards trusting AI agents to handle entire matters independently. Unlike previous AI insurance efforts by companies like Orbital and Corgi, which focused on underwriting AI outputs, Crosby's approach treats the AI agent as a human lawyer requiring its own insurance. This move reflects increasing confidence in AI agent capabilities and necessitates collaboration with auditors, bar associations, state regulators, and insurance providers to define evaluation standards and regulatory frameworks.

Key takeaway

For legal professionals considering AI integration, Crosby's move signals a future where AI agents operate with significant autonomy. You should evaluate your firm's liability frameworks and engage with regulators to prepare for this shift. This development implies a need to define new standards for AI agent accountability and explore specialized insurance products, potentially reshaping how legal services are delivered and regulated.

Key insights

Insuring AI legal agents for autonomous work treats them as human lawyers, shifting liability and responsibility.

Principles

• Autonomous AI agents require dedicated professional liability insurance.
• Trusting AI agents for full matters necessitates new liability frameworks.
• If an AI "outputs like a lawyer, then it is a lawyer".

In practice

• Engage auditors and regulators to define AI agent evaluation standards.
• Partner with insurance providers to develop new liability products.
• Explore AI agent autonomy for legal tasks beyond human review.

Topics

• AI Legal Agents
• Professional Liability Insurance
• Legal Tech Innovation
• Autonomous AI
• Law Firm Strategy
• Regulatory Compliance

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Legal Professional, Policy Maker, AI Ethicist

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Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial Lawyer.