Compliance

AI Insurance

Insurance products covering AI-specific risks including errors, bias, and liability.

Definition

AI Insurance refers to insurance products designed to cover risks specific to AI systems. As AI-related claims increase, insurers have developed specialized coverage:

  • AI errors and omissions: Coverage for AI system failures and inaccuracies
  • Algorithmic liability: Coverage for discrimination or bias claims
  • AI cyber coverage: Data breaches and security incidents involving AI
  • IP coverage: AI-related intellectual property claims

Key considerations:

  • Traditional policies may exclude or inadequately cover AI risks
  • Insurers require detailed AI risk assessments and governance documentation
  • Coverage gaps may exist for emerging AI risks (hallucinations, deepfakes)
  • Premiums vary significantly based on AI use cases and controls

Sources

  • Insurance Regulation
  • Emerging Risk Coverage