HSB, a specialist insurer and part of Munich Re, has launched a new liability policy that protects businesses from lawsuits arising from the use of artificial intelligence (AI) technology.
AI liability insurance is designed for small and medium-sized businesses that increasingly rely on artificial intelligence to increase productivity, reduce costs and stay competitive by automating routine tasks and analyzing data.
This coverage covers some AI-related losses that are not covered by general liability policies, including bodily injury, property damage, and advertising injuries for claims arising from AI-generated advertising, marketing, blogging, and social media.
“Businesses of all types are using AI to get work done faster and more efficiently,” said Timothy Zeilman, global head of product ownership at HSB. “At the same time, the AI transformation brings new legal and financial risks. Business owners may be wondering, am I protected? AI insurance helps remove this uncertainty by filling gaps in coverage so businesses can stay ahead of emerging risks.”
This coverage protects organizations from lawsuits arising from an insured’s use of artificial intelligence that results in injury to a person. For example, this might apply if an AI-controlled HVAC system creates condensation on the floor, causing someone to slip and get injured.
It also covers property damage claims resulting from an insured’s use of artificial intelligence, such as when an appliance retailer’s employees used an AI chatbot to generate instructions to install a dishwasher and caused a leak and widespread water damage.
In addition, the policy also covers legal actions alleging that the insured’s AI tool invades an individual’s privacy rights, is defamatory, defamatory, or infringes copyright. This may include the unauthorized use of content in marketing brochures or defamatory statements in blog or social media posts.
The coverage will be added to the business policies of insurance companies working with HSB, pending approval by the insurance regulator.
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