Markets/Coverages: Cowbell Launches Cyber Product for AI, Quantum Risks

Specialty cyber insurance provider Cowbell said it has launched Prime One, a non-admitted cyber insurance product designed for U.S. organizations with advanced digital risk profiles and annual revenues between $250 million and $1 billion.

Prime One delivers up to $10 million in limits and introduces affirmative coverage for artificial intelligence (AI)-related incidents and quantum computing risks. It is designed for organizations with complex, digitally dependent operations, and addresses exposures spanning cloud-based and interconnected systems, third-party vendors, financial transactions, and sensitive data environments.

“Cyber risk is no longer confined to traditional attack vectors,” said Trent Cooksley, co-founder and chief operating officer at Cowbell. “With Prime One, we are addressing the realities of modern risk, where AI-driven incidents, evolving fraud tactics, and the future impact of quantum computing require a fundamentally different approach to coverage.”

Prime One offers a broad range of core and additional coverages, including cybercrime, business interruption, system failure, data restoration, third-party liability, and specialized protections such as biometric data exposure, wrongful collection, and cyber-enabled tangible property loss.

Cowbell said a key differentiator of Prime One is its approach to quantum computing risk, including coverage for potential encryption vulnerabilities and the compromise of encrypted data as quantum capabilities evolve. While still an emerging threat, quantum computing is widely expected to challenge current encryption standards, making proactive risk transfer solutions increasingly critical.

Prime One also provides affirmative coverage for AI-related incidents, including risks arising from the unauthorized use or access to AI systems in business operations. As organizations rapidly adopt AI technologies, this coverage ensures protection keeps pace with innovation.

Coverage is written on a non-admitted basis by leading specialty insurance provider, Chaucer Insurance Company, which maintains an A (excellent) rating from A.M. Best, and A (strong) rating from Standard and Poor’s.

Prime One includes a one-year complimentary subscription to Cowbell’s Vendor Risk Assessment and Cybersecurity Awareness Training through Cowbell Resiliency Services (CRS). Additionally, policyholders who subscribe to Cowbell’s Managed Detection and Response (MDR) service may be eligible for the Prime One MDR Endorsement, which provides a $25,000 reduction in retention towards certain coverages.