Hiscox adds affirmative AI cover to PI offering for technology firms

By Rebecca Delaney

(The Insurer) - Hiscox has expanded its professional indemnity offering for technology businesses to include affirmative cover for AI-related claims, the insurer said on Thursday.

The new wording provides explicit cover for businesses that use AI to complete daily activities, as well as those building AI models for clients or advising on the use of AI tools.

Hiscox said the cover makes it one of the first insurers in the UK to provide affirmative AI cover via an explicit and clear insurance clause.

The cover can be applied in scenarios in which AI used by a customer to complete a contract or for which they have relied on the output of AI to deliver on a contract has gone wrong, or if a customer inputs incorrect information into an AI tool to complete a contract, leading to errors.

It also provides cover if a customer builds an AI model for a client that does not work to the agreed specifications, or if a customer provides advice on the viability of a particular AI tool that is found to be negligent.

Hiscox has also introduced four news clauses to enhance and clarify coverage for common loss scenarios, including network security liability, network interruption liability, personal data claims, and injury and property damage.

Additional updates to Hiscox's professional indemnity product for technology businesses include expanded errors and omissions cover for green technology (including pollution-related issues which were previously excluded), automatic waiver of subrogation, automatic cover for additional U.S. insureds, and covers for overseas support staff and entities.