Industry Deep-Dive · 9 min read

Insurance for AI / ML Companies: New Risks, New Underwriting

AI companies face a faster-evolving risk landscape than almost any other vertical. Underwriting has caught up unevenly.

About the author

Written by Reza.

Where AI risk shows up

Model output liability (hallucination, defamation, IP infringement). Training data provenance + IP indemnification. Bias / disparate-impact claims. Customer indemnification obligations.

Coverage notes

Tech E&O is the primary policy responding to model output disputes. Cyber covers data breach, but most AI-specific risk lives in Tech E&O. Some carriers now offer dedicated AI endorsements; others exclude AI risk explicitly.

Are there AI-specific exclusions on standard Tech E&O?

Increasingly, yes. We always read the policy form before binding for AI clients to confirm AI/ML output is covered, not excluded.

Frequently asked questions

Are there AI-specific exclusions on standard Tech E&O?

Increasingly, yes. We always read the policy form before binding for AI clients to confirm AI/ML output is covered, not excluded.

This material is general educational information, not legal, tax, or insurance advice. Coverage availability, policy terms, and regulatory requirements vary by state, carrier, and applicant.