FAQ category: AI Companies

You need cover because emerging technology comes with emerging risks and the legal landscape surrounding AI companies is still in its infancy. This brings opportunity and competition but also litigation.

With new technologies there are always growing pains, increasing the chances of complaints by clients and legal disputes.

Our tailored insurance packages provide AI companies with essential legal protection and support if things go wrong.

• Professional indemnity insurance – This is crucial. It covers you for allegations of mistakes and negligence. It provides compensation to your client (or a third-party) in circumstances where you are liable due to professional negligence, and usually covers associated defence or legal costs.
• Cyber insurance – This mustn’t be underestimated. Even the largest companies can be hacked. You know IT security better than most but it only takes a small oversight for your systems to be compromised. We provide specialist support and our insurance will get your business back on its feet quickly if the worst happens.
• Public and product liability – This covers physical injury and damage and can be added to packages at a low cost.
• Employers’ liability – This will protect you from legal costs should an employee sustain a bodily injury in the course of their employment. If you have any employees it is compulsory in the UK to have employers’ liability and it can be added to packages at a low cost.
• Computers, laptops and office equipment – We advise insuring your IT equipment from theft and destruction and can offer cover for portable IT on a worldwide basis.
• Directors’ and officers’ insurance – This covers claims against directors or senior managers made in a personal capacity and is especially relevant if you have external investors who could hold company directors liable for failures or missed targets.

We know your industry faces similar risks to software companies and other emerging technologies. That means:

• Traditional negligence, non-compliance and non-performance claims – Allegations by your client that the AI technology designed is not returning the correct or accurate results.
• Breach of contract – Allegations the AI software fails to meet the contractual provisions, including matters such as missed deadlines and failure to meet uptime requirements.
• Breach of intellectual property (IP) – Allegations you have copied the code or IP of another firm in the design of your AI technology.
• Cyber-attacks – Incidents affecting either your systems or your client’s (where you are liable).
• Counter claims and tactical litigation – Increasingly claims are being made tactically, for instance, by clients with cash flow challenges who make unfounded allegations in a bid to get your business to write off or reduce genuine invoices.

We can cover any business involved with AI technology, large or small and regardless of specialism and we work with insurers that will consider AI technology related to higher-risk industries like health and financial services too.