AI insurance, do you know what is covered?

As artificial intelligence becomes increasingly embedded in business operations, organisations are looking more closely at how their insurance programmes respond to AI-related risks. In response, insurers are beginning to offer affirmative AI cover; policy wording that explicitly confirms coverage for specific AI-related exposures, rather than relying on traditional policies where coverage may be open to interpretation. 

This is particularly relevant for businesses developing, deploying or using AI solutions as part of their products, services or day-to-day operations. As AI adoption accelerates, understanding what is and is not covered has become an important part of risk management. 

Many policies are now starting to include dedicated Artificial Intelligence Liability clauses that can provide protection for claims arising from the delivery of AI-based services, including generative AI solutions, AI-enabled consulting, implementation and managed services. Cover may also extend to claims resulting from reliance on AI-generated content such as text, images, audio, video or code used while delivering services to clients. 

In addition, some policies can respond to claims relating to data, prompts or content entered into AI systems, as well as failures or errors associated with AI technology developed by the business itself. 

As policy language continues to evolve, businesses should not assume their existing cover automatically addresses AI-related exposures. Understanding how policies respond and identifying any potential gaps is becoming increasingly important as insurers adapt to this emerging risk landscape. 

At Price Forbes Ventures, we help businesses review their insurance arrangements, assess existing policy wording and identify whether additional AI-specific cover should be considered. 

Key takeaways 

• AI-related insurance coverage varies significantly between policies. 

• Affirmative AI cover provides greater clarity around insured risks. 

• Cover may extend to AI-generated outputs, AI-powered services and AI system failures. 

• Businesses should review existing policies to understand potential coverage gaps. 

• Regular insurance reviews can help ensure protection keeps pace with evolving technology. 

For more information on AI-related risks and insurance considerations, please contact the Ventures team.