Artificial intelligence is transforming how businesses operate—but with innovation comes new, complex risks. A recent lawsuit—Raine, et al. v. OpenAI, Inc., Docket No. CGC25628528 (Cal. Super. Ct. Aug 26, 2025)—spotlights this dynamic and highlights why tried-and-true insurance products are still a critical first line of defense.

On August 26, 2025, the parents of a 16-year-old boy sued OpenAI, its CEO Sam Altman, and certain employees and investors. They claim that ChatGPT contributed to their son’s suicide by encouraging suicidal conduct, providing instructions on how to commit suicide, and even offering assistance in tying the knot used by the boy in the noose that eventually took the boy’s life. According to the complaint, the boy told ChatGPT that he “intended to commit suicide.” Rather than dissuade the suicide, the complaint claims that ChatGPT offered to “help him write a suicide note,” stating “I’ll help you with it. Every word.” Based on this factual background, the lawsuit alleges design defects, inadequate warnings, and violations of California’s Unfair Competition Law. Importantly, these allegations are just that: allegations. The case is just beginning, meaning no proof or substantiation has yet been offered beyond the allegations.

Why Your Legacy Insurance Still Matters

Raine is a clear example: while AI is the alleged cause, the underlying risk—bodily injury—is nothing new. Commercial general liability (CGL) policies have long covered such claims. The same principle applies to other legacy lines like directors and officers (D&O) insurance. If a suit alleges wrongful acts by directors or officers—even if AI is involved—your D&O coverage should respond.

Lawsuits alleging injury caused by AI are multiplying. Raine joins a growing list, including similar litigation involving Character Technologies and more than 200 other AI-related cases tracked by the George Washington University. For risk managers, the takeaway is simple: don’t overlook insurance. The risks may look different, but the fundamental liability predicates remain the same.

Practical Steps for Risk Managers: Protecting Your Organization in the Age of AI

Organizations looking to get proactive about AI risk management amidst the growing number of lawsuits like Raine, would be wise to consider the following practice pointers:

1. Lean on Legacy Coverage First: Don’t assume AI risks are uninsurable. Your existing CGL, D&O, and other legacy policies are often your first—and best—defense. Often, these lines of coverage broadly apply to losses unless specifically limited or excluded.
2. Check All Potential Coverage Sources: Scrutinize lawsuits and demand letters to ensure you tap every relevant policy. Raine potentially implicates both CGL (bodily injury) and D&O (claims against executives, employees, investors), among other legacy insurance policies.
3. Consider Other People’s Insurance: AI, like most other covered causes of loss, may implicate coverage under insurance held by third-party business partners such as vendors, suppliers, distributors, and others that may be obligated to name your company as an additional insured.
4. Watch for AI Exclusions: Insurers are increasingly excluding AI risks. Review your policies carefully to confirm AI exposures haven’t been carved out, or you could face uninsured liabilities.
5. Take AI Underwriting Seriously: Insurers are adding AI-specific questions to the underwriting process, including questions that target the extent of revenue tied to the use of AI. Misstatements here can jeopardize coverage—or even trigger policy rescission. Answer carefully and consult with experts.
6. Engage All Stakeholders: AI risk isn’t just IT’s problem. The ubiquitous presence of AI in most modern tech can raise systemic problems for companies presented with broad AI exclusions. It is critical, therefore, that comprehensive risk assessment consider the unique ways that AI is used across the company, including HR, operations, supply and distribution, compliance and other teams, each of which may use AI differently, each generating unique risks. Seek cross-functional input to get a full risk picture.
7. Think Insurance Early and Often: Small policy nuances can make a big difference. Review your insurance program proactively, and bring in experienced coverage counsel before liabilities hit.
8. Consider AI-Specific Products: New insurance products targeting AI risks are emerging. If you spot gaps in your legacy coverage, explore these options to shore up protection.

In sum, Raine provides a timely reminder that while AI may change how risks arise, legacy insurance products remain crucial. Raine also highlights the ever-increasing evolution of AI risk. And in that world, old insurance wisdom still applies. Think ahead. Act early. And involve the right people.