AI law firm Crosby secured $5M liability insurance for its AI agents
graceisford · x · 2026-11-08
The NYT reports that Ryan Daniels, CEO of AI law firm Crosby, bought malpractice-style liability insurance for his AI agents — something most insurers aren't ready to offer.
- Crosby uses AI for most contract review with 60 lawyers supervising, advertising one-hour NDA turnaround at flat rates
- Daniels' goal: "full legal work done without lawyers — just agents" by end of next year, so coverage must extend to agents without human-in-the-loop
- It took 6 months to secure $5M of AI liability insurance from two-year-old Testudo
- Industry context: no standard way to assess AI-tool risk and few dedicated AI policies at major carriers, but many expect AI risk to follow the same path as cyber risk — excluded first, dedicated products later
The quoting tweet jokes that Daniels was destined for legal AI: five lawyers in his immediate family, and "Daniel" is Hebrew for "God is my judge."
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