AI Liability
Available through: your broker
Coverage
| Insuring agreement | What it covers | Basis |
|---|---|---|
IA 1 Autonomous Execution Loss | Direct financial loss when an agent executes a transaction or a binding commitment incorrectly. It reaches both acting beyond delegated authority and performing an authorized task wrongly. | First party |
IA 2 Model and Data Restoration | Reasonable cost to restore or reconstruct data and system configurations the AI damaged, deleted or corrupted, back to substantially their prior state. | First party |
IA 3 Resource Overrun | Unintended excess compute, API and other scheduled metered charges, including accidental loops and repeated tool calls. | First party |
IA 4 Event Response Costs | External cost to investigate and contain a specific AI event, take legal advice on notification duties, and give the notifications required. | First party |
IA 5 Wrongful Decision Remediation | Cost to identify, review and correct affected decisions when a scheduled automated decision process produces materially erroneous or unlawfully discriminatory outcomes. | First party |
IA 6 Wrongful Output Disclosure | Damages and defense costs for a claim alleging wrongful disclosure of protected information caused by an AI event in covered use. | Third party |
IA 7 AI Regulatory Proceedings | Reasonable defense and investigation costs in a regulatory proceeding within the scope elected in your schedule. | Regulatory |
Head 8A Professional and Operational Error | Third-party financial harm from erroneous AI output or execution in your scheduled business activities, including customer negligence claims. | Third partyDIC |
Head 8B Automated Decision Liability | Discrimination and other elected employment or consequential decision claims affecting employees, applicants or customers. | Third partyDIC |
Head 8C Content and Publication | Defamation and expressly elected intellectual property infringement arising from AI assisted content. | Third partyDIC |
Head 8DPlanned Bodily Injury and Property Damage | Physical harm from expressly endorsed activities only, with a scheduled operating envelope and its own sublimit. | Third partyDIC |
Head 8EPlanned Management and Fiduciary | Claims concerning scheduled AI governance duties or representations, in specified insured capacities. | Third partyDIC |
Agreements 1 to 5 pay your own loss on discovery, with no claim required. DIC means the head can be written as difference in conditions against an identified gap in a named underlying policy, rather than as primary cover. An absent, denied or exhausted underlying policy does not by itself create attachment. Agreements marked Planned need an express endorsement and specialist review. The policy wording governs in every respect.
Underwriting
Most accounts are underwritten from the application and a review of public records. For higher-risk accounts, we request a telemetry review. Your broker will ask you to connect your Google Workspace or Microsoft 365 tenant through a read-only authorization. We use it to see how AI is used across your organization, which tools, what they can access, and how activity is governed, and turn that into a risk score used only for underwriting. Nothing is installed. Access is read-only, we do not retain your workspace content, and you can revoke access at any time.
Through your broker
Placed through appointed surplus lines brokers. Your broker brings the application; there is no self serve gate and no pre bind audit.
Declare, then schedule what matters
You declare your AI use, then schedule the workflows that can move money, change records, disclose or publish, make consequential decisions, spend metered resources or control equipment. Low consequence use is declared by category, not scheduled one tool at a time.
Evidence only where it changes the answer
Where a permission, cap, approval or stopping control is unclear and the answer would change the decision, you get one consolidated request naming the workflow, the fact needed and the decision being held. We do not ask for every available log.
A fast, plain answer
An indication within five business days of a complete submission, with the reason and what is still outstanding. A hard decline comes within one business day, with the reason.
Hypothetical scenarios
| Buyer | Uses AI to | Agreements | Indicative premium | Rating driver |
|---|---|---|---|---|
Wholesale distributor | Purchasing agents, ERP copilots and customer service tools. | Whole policy | $62,000 to $78,000 | $40M authorized purchasing |
Payments business | A treasury agent and internal reconciliation automation. | IA 1IA 2IA 4 | $15,000 to $19,000 | $20M authorized payments |
Freight brokerage | Booking agents and dispatch automation. | IA 1IA 4Head 8A | $24,000 to $30,000 | $12M booking commitments |
Professional services group | Research, billing, client support and recruitment workflows. | Whole policy | $78,000 to $96,000 | 300,000 sensitive client records |
Marketing agency | Creative copilots and an external campaign agent. | IA 2IA 3IA 4 | $10,000 minimum | $600,000 metered spend |
Employer | A licensed screening tool and an internal scheduling agent. | IA 4IA 5IA 7Head 8B | $55,000 to $70,000 | 25,000 consequential decisions |
Manufacturer | Engineering assistants and a records scheduling agent. | IA 2IA 4 | $10,000 to $13,000 | 180,000 writable planning records |
Retail group | Refund, stock, service and HR workflows. | Whole policy | $68,000 to $84,000 | $30M refund authority |
Property manager | Leasing assistants, maintenance automation and a public chatbot. | IA 4IA 6Head 8C | $26,000 to $33,000 | 120,000 tenant records |
Logistics operator | Scheduling agents and an AI controlled handling system. | IA 1IA 4Head 8D | $90,000 to $120,000 | Endorsed handling activity |
Listed company | Internal AI tools, with governance representations to investors. | IA 4Head 8E | $60,000 to $85,000 | Scheduled insured capacities |
Outsourced services firm | Document agents and billing automation in its own service delivery. | IA 1IA 2IA 3IA 4IA 5IA 6Head 8A | $52,000 to $66,000 | 350,000 client records |
Twelve representative placements, hypothetical rather than customers. Every agreement is optional, and "Whole policy" marks buyers who take the policy as a package rather than electing agreement by agreement. Shaded agreements are available at launch. Indicative premiums are demonstration outputs of the Rating Plan, not quotations, and exclude the policy fee. Every figure is subject to wording, elections, verified exposure and an approved ratebook.
Regulatory notices
ISO GenAI exclusions
CG 40 47, CG 40 48 and CG 35 08, effective 1 January 2026, on the general liability line every commercial buyer holds.
EU AI Act
High-risk obligations phasing in, with fines up to EUR 35M or 7% of global turnover.
US state AI statutes
Automated-decision and AI-transparency laws, tracked on the AI Statute Schedule attached to each policy and maintained quarterly.
NAIC AI model bulletin
Adopted by roughly half of US states, classifying automated underwriting, rating and claim decisions in its highest risk bracket.
SEC AI disclosure scrutiny
AI-disclosure securities actions were pleaded in the first half of 2026, reaching directors and officers cover.
ABA Formal Opinion 512
Professional-responsibility duties for AI use by lawyers.
Risk mitigation
Not a condition, and not a warranty
Software enrollment is never an automatic condition of coverage, and an application answer does not by itself become a warranty. Any control that is a condition must be specific, measurable and expressly endorsed.
Any tooling qualifies
What matters is the capability rather than the vendor: an inventory of AI use, visible permissions, attribution to an actor, and a retained window of activity. Ours, another provider's, or one you built, all count the same.
It buys a better decision, not a discount
Continuous telemetry narrows the uncertainty around what your agents can do and how fast they can do it. Narrower uncertainty means fewer referrals and a faster answer, and that benefit is real from the first submission.