Insurer Bad Faith and AI Bias: Legal Strategies to Challenge or Defend Insurer AI Tools

Robert M. Horkovich | Anderson Kill

Robert M. Horkovich is “the ‘go-to person’ in the area of insurance recovery,” according to a client cited by Chambers USA, which has recognized Mr. Horkovich as a leading insurance recovery attorney every year since 2005. According to Chambers, Mr. Horkovich “has a strong ‘client-first’ attitude” and “is recognized in the market for his leading trial and negotiation skills, with an undisputed national presence.” In 2025, Bob was named Benchmark Litigation’s Hall of Fame.

Bob has obtained over $8 billion in settlements and judgments from insurance companies for his clients. Bob is a trial lawyer with substantial experience in trying complex insurance coverage actions on behalf of corporate policyholders and governmental entities. His victories include one of the top 10 jury verdicts in the United States, the top insurance recovery jury verdict in the United States, seven landmark state Supreme Court decisions, eight jury verdicts and nine bench trial decisions in favor of the policyholder.

Bob is also a member of Anderson Kill’s White Collar Defense Group. He has extensive experience in antitrust matters, as well in criminal codes and the recovery of stolen assets and has published extensively on antitrust matters. As a Captain in the USAF JAG Corp., he was a Special Assistant U.S. Attorney and, in that role, prosecuted more than 200 cases. He also was a Special Assistant District Attorney for Manhattan for the purpose of handling and arguing appeals of criminal convictions and successfully argued People v. Octavio Peck before the New York Court of Appeals winning an issue of constitutional law of first impression.

Marialuisa S. Gallozzi | Covington & Burling LLP

Marialuisa (ML) Gallozzi is a partner in the insurance coverage practice of Covington & Burling LLP, where she serves as lead counsel for policyholders in resolving complex, high-value insurance coverage claims. She has represented clients seeking coverage for some of the largest and most widespread cyber losses in history, including ransomware, double extortion, business email compromise and destructive malware. Her experience includes coverage under cyber-risk, technology errors & omissions, property/business interruption, kidnap & ransom/specialty risk, terrorism, general liability, crime and management liability/D&O coverages. She advises policyholder clients on insuring their AI risks under new and existing insurance products and on coverage disputes with their insurers.

ML is a member of the American College of Coverage Counsel and the American Law Institute. Her professional recognitions include Chambers USA, Business Insurance’s “Women to Watch” and Washington DC Super Lawyers’ “Top 100 Lawyers” and “Top 50 Women Lawyers.” ML received her A.B. from Harvard University and her J.D. from New York University School of Law.

Megan Mumford Myers | Covington & Burling LLP

Megan Mumford Myers represents corporate policyholders in complex, high-stakes insurance coverage disputes and litigation. She has helped policyholders recover from first-party losses and fund defense and settlement of third-party claims under a wide range of insurance policies, including property, cyber, general liability, Directors & Officers, and Errors & Omissions policies.

Chirag Shah | University of Washington

Chirag Shah is Professor in Information School (iSchool) at University of Washington (UW) in Seattle. He is also Adjunct Professor with Paul G. Allen School of Computer Science & Engineering as well as Human Centered Design & Engineering (HCDE). He is the Founding Director for InfoSeeking Lab and Founding Co-Director of Center for Responsibility in AI Systems & Experiences (RAISE). He works in intelligent information access systems, focusing on task-oriented search, proactive recommendations, and conversational systems. He is also engaged in work with generative AI, specifically in information access and image classification problems. In addition to creating AI-driven information access systems that provide more personalized reactive and proactive recommendations, he is also focusing on making such systems transparent, fair, and free of biases.

Shah is a Distinguished Member of Association of Computing Machinery (ACM) as well as Association for Information Science & Technology (ASIS&T). He is the recipient of the 2019 Microsoft BCS/IRSG Karen Spärck Jones Award. He has published nearly 200 peer-reviewed articles and authored seven books, including textbooks on data science and machine learning.

He is very selectively looking for new students in his lab and center with strong background and interest in generative AI, large language models in search and recommendation, and bias and fairness in information access systems.

Gregory L. Ewing | Dickinson Wright LLP

Gregory Ewing, a member at Dickinson Wright’s Washington D.C. office, concentrates his practice on dispute resolution and counsel in cyber security, privacy, blockchain, AI, and other technology-related matters. With a background as a software developer and consultant prior to law school, he brings a practical foundation to deliver legal insights on contractual, licensing, privacy, and technological issues.

With extensive experience in high-profile international and domestic arbitration and litigation, Greg advises clients of all sizes, from Fortune 100 businesses to non-U.S. sovereigns, small businesses, and individuals. He has appeared before ICSID tribunals, the International Trade Commission (ITC), U.S. Circuit Courts, U.S. District Courts, U.S. State Courts, and various arbitration tribunals to resolve disputes with claims ranging from tens of thousands to billions of dollars. Greg also handles a wide variety of general commercial litigation matters for businesses located within and outside Maryland and the District of Columbia.

Utilizing his combined legal and technical understanding, Greg offers actionable advice to assist clients in developing cutting-edge cybersecurity policies, privacy compliance programs, licensing models, and technology contracting strategies. Whenever possible, he uses all available leverage to force early, favorable settlements, or if early settlement isn’t possible, he takes advantage of all tools available to drive the best result.

In addition, Greg has represented manufacturers of products as varied as wooden cabinets and vanities, extruded aluminum, digital cameras, and stainless-steel food processing equipment in domestic trade investigations before the USITC and Department of Commerce. He has assisted clients in carving themselves out of investigations, arguing against domestic injury due to imports, enforcing trademarks and patents, protecting trade secrets, and seeking to minimize countervailing duties and dumping margins.

I. AI applications in insurance: Machine learning, NLP, computer vision, predictive analytics | 2:00pm – 2:10pm

II. Capabilities, limitations, and the “black box” problem in AI decision-making | 2:10pm – 2:15pm

III. Algorithmic bias, discrimination, and fairness in claims handling | 2:15pm – 2:20pm

IV. Bad faith, negligence, and other legal claims tied to insurer AI reliance | 2:20pm – 2:30pm

V. Real-world examples of AI causing policyholder harm | 2:30pm – 2:40pm

VI. Discovery strategies to uncover AI use in claims and litigation | 2:40pm – 2:50pm

VII. Policyholder risks from AI use: Hallucinations, D&O exposure, privacy, data security | 2:50pm – 3:00pm

Break | 3:00pm – 3:10pm

VIII. Maximizing coverage for AI risks under traditional policies | 3:10pm – 3:20pm

IX. Insurer responses: Exclusions, sublimits, AI-specific products, “silent AI” | 3:20pm – 3:30pm

X. Practical action steps for policyholders, insurers, and counsel | 3:30pm – 3:40pm

XI. Establishing the right contractual relationships: AI to insurance | 3:40pm – 3:50pm

XII. Using exclusions and limits as all parties negotiate the ever-changing AI use landscape | 3:50pm – 4:00pm

XIII. Ensuring the foundation of decisions is justifiable, ensuring rights to data and use of appropriate data | 4:00pm – 4:10pm