Crosby seeks malpractice insurance for AI agents as autonomous professionals
In brief
- Crosby CEO Ryan Daniels announced the AI agent insurance plan on LinkedIn in late July 2026.
- Crosby aims to insure its AI agents almost as autonomous professionals, not as lawyers' tools.
- Auditors, bar associations, regulators and insurers are working with Crosby on new standards, the firm says.
- No insurer has been reported as agreeing to cover the AI agents.
How Crosby's model works
Crosby isn't a typical law firm. It operates as two entities (a technology company and a licensed professional limited liability company, or PLLC), and it already held malpractice coverage before this push. The AI agents handle the bulk of contract review, while lawyers act as quality control and sign off on the finished product.
According to Crypto Briefing, the firm employs between 45 and 60 licensed attorneys who review every legal output the AI produces. That output is mostly contracts, such as non-disclosure agreements and master services agreements. Clients include AI startups Cursor and Runway.
The same report said Crosby's contract volume climbed from $30 million to $1 billion in under a year, reaching that mark by mid-2026. Crosby also raised a $60 million Series B in spring 2026 at a valuation of roughly $400 million, Crypto Briefing reported.
Why insuring an agent is hard
Malpractice insurance assumes a licensed person on the hook. An AI agent holds no license and it's not a person, which complicates the traditional model at almost every step.
So what's Crosby actually asking for? The firm frames its goal as insured outputs that its AI agents can produce on their own. It said it's working with auditors, bar associations, state regulators and insurers to build new evaluation standards and policy terms. That's Crosby's stated aim, and the report doesn't say any insurer has agreed to cover the agents.
Crosby isn't the first to try this.
Earlier insurance efforts in legal tech from Orbital and Corgi touched on similar territory, per the report.
What it could mean
Crypto Briefing's analysis is that if Crosby gets insurers and regulators to agree on how to evaluate and price AI agent risk, it would create a template others could copy. That's a big if, and it hasn't happened yet. For now, Crosby's licensed attorneys still review every output its AI produces, according to the report.
Frequently asked questions
Why is it hard to buy malpractice insurance for an AI lawyer?
Malpractice coverage was built around licensed human professionals. An AI agent holds no license and is not a person, which complicates the traditional malpractice insurance model, according to Crypto Briefing.
Has any insurer agreed to cover Crosby's AI agents?
No insurer has been reported as agreeing to cover them. Crosby said it was working with auditors, bar associations, state regulators and insurers to build new evaluation standards and policy terms, with a stated goal of "insured outputs" its AI agents could produce on their own.
Do humans still check Crosby's AI-generated legal work?
Yes. Crypto Briefing reported that Crosby employed between 45 and 60 licensed attorneys who reviewed every legal output the AI produced. The AI agents handled most contract review, and lawyers acted as quality control and signed off on the finished product.
