Emerging Casualty Exposures in 2025: From AI Liability to Environmental Claims
Casualty insurance has always been shaped by shifting social, technological and regulatory landscapes. In 2025, retail brokers are finding that client conversations increasingly extend beyond traditional public and employer’s liability into new and less-defined areas of risk. For brokers advising contractors, SMEs, and specialist firms, being ahead of these trends is critical.
AI and Technology Liability
The rise of artificial intelligence across industries is creating complex liability exposures. From construction software that miscalculates load-bearing tolerances, to recruitment platforms accused of discrimination, AI introduces risks where fault is difficult to attribute.
This year’s High Court case of Getty Images v. Stability AI illustrates how liability can arise from the way AI systems are developed. Getty alleges its images were used without licence to train Stability AI’s models, with outputs reproducing copyrighted material. Such disputes highlight that liability is not confined to bodily injury or property damage, it can extend to intellectual property and reputational harm (Pinsent Masons, 2025).
Retail brokers must ensure clients understand that their standard liability policies may not respond to claims stemming from algorithmic decision-making, data bias or IP infringement. Wholesale access to specialist markets can help structure cover that reflects these emerging risks.
Climate and Environmental Liability
Environmental exposures are escalating as regulations tighten and public awareness grows. Contractors working with waste management, scaffolding, or demolition now face greater scrutiny over pollution, hazardous materials, and environmental damage.
In May 2025, Thames Water was fined a record £122.7m for repeated sewage discharges and breaches of rules relating to wastewater operations and dividend payments (Ofwat, 2025). At the same time, the UK government has issued new guidance requiring environmental impact assessments to consider downstream emissions, such as pollution created when fossil fuels are ultimately used. These developments demonstrate that liability is expanding not only in scale but in scope, reaching further into the supply chain and lifecycle of business activity.
Retail brokers should be asking clients whether their liability policies specifically cover gradual pollution, remediation costs, or cross-border environmental incidents. Access to Lloyd’s and specialist carriers provides solutions where standard markets often impose exclusions.
Social Inflation and Class Actions
Litigation trends are shifting, with courts more willing to award higher damages in casualty claims. Social inflation—driven by claimant-friendly judgments, group actions, and expanding legal funding—means even routine liability claims can escalate rapidly. For retail brokers, this makes adequate indemnity limits a key conversation point with clients, particularly in sectors facing high public interaction.
Cross-Border Liability Risks
With many UK SMEs now trading or contracting abroad, overseas liability exposures are increasingly relevant. Policies written for UK-only risks often exclude US/Canada, where claims costs can be substantial. Brokers should be checking territorial and jurisdictional limits carefully and working with wholesale partners who can negotiate international casualty placements.
What This Means for Retail Brokers
Clients are looking to their brokers for reassurance and solutions in a risk environment that is more complex than ever. Retail brokers who raise these exposures proactively will not only strengthen client relationships but also position themselves as trusted advisors. Wholesale partnerships give brokers the ability to provide innovative solutions that match these evolving risks, rather than defaulting to “off-the-shelf” policies that may leave dangerous gaps.
At Servca, we work with retail brokers across the UK to secure bespoke casualty placements through Lloyd’s and specialist markets. From high-risk trades to emerging liability exposures, we support brokers in delivering solutions that keep clients protected and competitive.
References
Ofwat. (2025). Ofwat fines Thames Water nearly £123m following two investigations into the company. https://www.ofwat.gov.uk/ofwat-fines-thames-water-nearly-123m-following-two-investigations-into-the-company/
Pinsent Masons. (2025). Getty Images v Stability AI: Why the remaining copyright claims are of more than secondary significance. https://www.pinsentmasons.com/out-law/analysis/getty-images-v-stability-ai-copyright-claims-significance
