New York-based law firm Crosby announced plans in late July 2026 to secure professional liability insurance for its AI agents. The firm aims to treat these agents as autonomous professionals rather than mere software tools, potentially reducing the need for human supervision in legal work.
Crosby operates as both a technology company and a licensed professional limited liability company. The firm currently employs between 45 and 60 licensed attorneys who review AI-generated contracts, including non-disclosure and master services agreements.
The company has experienced significant growth, with contract volume rising from $30 million to $1 billion in under a year by mid-2026. In the spring of 2026, Crosby raised a $60 million Series B funding round, reaching a valuation of approximately $400 million.
To implement its insurance strategy, Crosby is collaborating with auditors, bar associations, state regulators, and insurers to establish new evaluation standards. The firm seeks to provide insured outputs that carry the same financial backing as work reviewed by human partners.
The firm counts AI startups such as Cursor and Runway among its clients. Success in this initiative could provide a template for the legal industry, potentially allowing firms to scale contract volume without a proportional increase in headcount.
