Law firm buys $5M malpractice insurance for its AI agents, drops human oversight

emilyzsh · x · 2026-11-10

Crosby Legal has secured a $5M malpractice insurance policy for its AI agents — reportedly the first of its kind. Nine months ago the firm noticed its agents matching or beating its lawyers on some work. Once the policy took effect on Nov 3, it removed lawyer oversight from all 'paralegal tasks' that don't legally require a licensed attorney — about 20% of its workload — freeing lawyers for judgment and client advisory. The firm says agents could do full legal work once regulations change; the move was covered by the NYT.

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