A recent class action lawsuit against Google alleges the company secretly enabled its Gemini AI assistant across email, chat, and video services without user consent, raising serious privacy concerns under California law. The case—filed in California federal court on November 11—underscores growing litigation risks for businesses integrating AI tools into existing platforms.
Karin Aldama, an insurance coverage attorney at Gallagher & Kennedy, was interviewed for the Law360 article and explained why these developments matter for insurance coverage. Traditional cybersecurity policies focus on external attacks, but AI-driven collection of personal data creates “a completely different paradigm.” Many liability policies exclude statutory violations and disclosure of personally identifiable information (PII), and insurers are beginning to add AI-specific exclusions. While endorsements may emerge, they will likely increase costs.
She advises policyholders to take proactive steps: disclose AI tools and data practices, offer opt-out options, and review contracts with AI vendors to avoid coverage disputes. As AI adoption accelerates, these safeguards are critical to minimize exposure and maintain insurability.
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about the author
Karin Aldama handles complex commercial and business litigation and insurance coverage matters for mid-size to Fortune 500 companies in hospitality, finance, utilities, aerospace, and semiconductors. She helps corporate clients and governmental entities find insurance programs that meet their needs and obtain the coverage to which their policies entitle them.