28/07/2025
As small businesses turn the uncertainty of AI into opportunity there's a risk that needs managing which existing business insurance coverage might be missing.
While a Professional Indemnity (PI) insurance policy may cover traditional negligence claims, many PI policies may not explicitly cover AI related errors or omissions. If AI causes a loss, insurers may argue that the claim falls outside coverage, leaving everyone involved exposed to financial risk.
A Public Liability insurance policy typically covers injury to members of the public or property damage, but what happens when an AI tool or agent gives wrong information that causes financial loss? Traditional liability models may not be equipped to address the unique risks associated.
Cyber insurance policies, while increasingly common, may not fit neatly into existing policy language when it comes to AI risks, and insurers may argue that exclusions or gaps in policy wordings apply.
Our research with our existing client portfolio suggests only a small percentage feel confident their insurance covers AI risks effectively.
So how do you identify and fill the hidden gaps in traditional coverage?
"Intelligent Risk Management"
Businesses can transform coverage gaps into competitive advantage by . . .
> Automating real time risk detection across AI systems and traditional operations.
>Predicting disruptions before they impact business continuity.
>Prioritising high impact threats that current policies might miss.
>Adapting strategies dynamically as AI risks evolve.
AI powered risk intelligence doesn't just identify what traditional insurance coverage might miss, it helps prevent claims from occurring in the first place.
Before assuming your current Professional Indemnity, Public Liability, or Cyber policies provide adequate AI coverage, have the conversation with your insurance broker. Many existing policies were designed in a pre AI world and may leave significant gaps.
And before contacting them let us assist you in identifying exactly what questions to ask your existing broker about AI risks, coverage gaps, and whether additional protection is needed.
Let's make sure integration of AI into your business enhances rather than endangers your it.
