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Key risks
Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.
An AI business faces staff disputes, employee data complaints, regulatory inquiry, or internal fraud
Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.
A system outage, cyber event or platform failure disrupts your operations and results in claims or losses for your business and clients.
Technology Liability Insurance may respond to claims arising from professional errors, cyber incidents and business interruption losses.
A fraudulent email or spoofed instruction tricks your team into transferring funds to a scammer, resulting in direct financial loss.
Cyber Insurance may respond to losses arising from funds transfer fraud where a fraudulent electronic instruction causes a payment loss.
Unauthorised access to your AI platform exposes training, user or employee data and triggers legal and regulatory action.
Cyber Insurance may respond to breach response costs, legal expenses, damages and regulatory penalties arising from a data breach or privacy liability.
A model error, flawed output or failed integration causes client loss and a formal dispute over your professional services.
Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.
An AI business faces staff disputes, employee data complaints, regulatory inquiry, or internal fraud
Management Liability may respond to employment, statutory, crime, tax audit and inquiry cost claims.
A system outage, cyber event or platform failure disrupts your operations and results in claims or losses for your business and clients.
Technology Liability Insurance may respond to claims arising from professional errors, cyber incidents and business interruption losses.
A fraudulent email or spoofed instruction tricks your team into transferring funds to a scammer, resulting in direct financial loss.
Cyber Insurance may respond to losses arising from funds transfer fraud where a fraudulent electronic instruction causes a payment loss.
Unauthorised access to your AI platform exposes training, user or employee data and triggers legal and regulatory action.
Cyber Insurance may respond to breach response costs, legal expenses, damages and regulatory penalties arising from a data breach or privacy liability.
A model error, flawed output or failed integration causes client loss and a formal dispute over your professional services.
Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.
Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.
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Professional Indemnity, Management Liability, and more for Artificial Intelligence businesses from leading insurers
Claim examples
Real-world examples of common claims AI businesses may face.
A third party alleges an AI system was trained using copyrighted material without permission. The claimant pursues legal action for intellectual property infringement and associated financial loss.
Information Technology Liability Insurance may respond to intellectual property infringement claims arising from technology services, including defence costs. Standalone Intellectual Property Insurance may also provide broader cover.
An AI platform experiences unauthorised access to training data containing personal information. Affected individuals allege privacy breaches and the business incurs legal costs responding to claims and regulator enquiries.
Cyber & Technology Insurance may respond to claims or regulatory investigations arising from privacy breaches, data security failures or unauthorised access, including defence and associated legal costs.
An AI consultancy delivers a machine learning solution that does not perform as specified in the contract. The client claims the solution failed to meet agreed requirements and seeks damages for lost revenue.
Information Technology Liability Insurance may respond to claims alleging failure to perform services as agreed, errors or omissions in service delivery, or unintentional breach of contract, including defence costs.
An AI developer provides a predictive model used by a client to automate pricing decisions. A flaw in the model produces inaccurate outputs, causing the client financial loss. The client alleges negligence and seeks compensation.
Information Technology Liability Insurance may respond to claims arising from errors or failures in AI or technology services, including where inaccurate outputs lead to financial loss, including defence costs.
A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.
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