Artificial intelligence has moved from dreams to reality at an incredible pace. What was once experimental is now nearly always embedded across businesses. From automating workflows and analysing data to powering customer interactions and decision-making.
But as companies rush to adopt AI, a new question is emerging, how do you actually insure it?
AI is changing risk, not just technology
AI isn’t just another IT upgrade, it fundamentally changes how businesses operate, and with that comes a different risk profile.
Some of the key concerns include:
- Errors and decision-making: What happens if an AI model makes a wrong recommendation or decision?
- Bias and discrimination: AI systems can unintentionally produce biased outcomes
- Data risks: AI relies heavily on large datasets, raising privacy and security concerns
- Intellectual property issues: Questions around ownership of AI-generated content
- Cyber exposure: AI systems can both create and amplify cyber vulnerabilities
These aren’t always neatly covered by traditional insurance policies, which were designed before AI became mainstream.
Where technology insurers fit in
Technology insurers are starting to adapt, particularly within policies like:
- Professional indemnity (PI) / errors & omissions (E&O)
- Cyber insurance
- Media liability and intellectual property cover
Rather than creating entirely new products (at least for now), many insurers are evolving existing ones to respond to AI-related risks.
For example:
- Professional indemnity / E&O
If your business provides AI-driven services or products, PI insurance is often the first line of defence. It can respond to claims where a client suffers financial loss due to errors, omissions, or negligence, including those involving AI outputs. - Cyber insurance
AI systems increase the attack surface for cyber threats. Cyber policies can cover data breaches, ransomware attacks, and system failures involving AI infrastructure. - Media and IP liability
As AI generates content, questions around copyright infringement and defamation become more relevant. Some policies can respond to claims linked to AI-generated outputs.
The gaps clients need to watch
While insurers are adapting, coverage isn’t always straightforward.
Common challenges include:
- Silent AI exposure: Policies that don’t explicitly mention AI but may still be triggered
- Exclusions: Some insurers are starting to introduce AI-specific exclusions or restrictions
- Ambiguity: Unclear wording around automated decision-making or algorithmic risk
This means businesses can’t assume they’re covered and they need to review policies carefully.
What insurers are starting to ask
As AI adoption grows, underwriting is becoming more detailed. Insurers increasingly want to understand:
- How AI is being used in your business?
- Whether there is human oversight of AI decisions?
- What data is being used to train models?
- How are models are tested, validated, and monitored?
- What controls are in place to manage bias and errors?
In other words, insurers are not just pricing risk they’re assessing how responsibly AI is being deployed.
The role of a specialist broker
AI risk sits at the intersection of technology, legal liability, and cybersecurity. That makes it more complex than traditional insurance placements.
A specialist technology broker can:
- Map AI related risks across multiple policies
- Identify gaps or overlaps in coverage
- Negotiate wording that reflects how AI is actually used
- Position your business effectively to insurers
As with many emerging risks, how your story is presented can make a significant difference to the outcome.
Final thought
AI is not just another trend it’s becoming a core part of how modern businesses operate. But with that comes a new layer of risk that needs to be properly understood and insured.
Technology insurers are evolving to meet this challenge, but the market is still developing. For businesses, the key is not to assume coverage exists but to actively engage with it.
Because when it comes to AI, the question isn’t whether something could go wrong, it’s whether or not you’re properly protected if it does.