Your business may use more artificial intelligence (AI) tools today than it did a year ago. Companies now use AI for customer service, scheduling, data review and other daily tasks.
As AI use grows, more claims now involve cyber events, data leaks and vendor problems. Many insurance policies came out before businesses started using AI every day. Because of that, coverage questions may arise after a loss. When your company adds new AI tools into daily work, your insurance risk may change too.
AI creates new business risks
AI tools can create risks that differ from older technology problems. In many cases, the issue comes from how employees or vendors use the technology rather than the AI system itself. Some common AI-related business risks include:
- Employees sharing private company data through public AI tools
- AI-generated work creating liability concerns
- Outside AI vendors creating coverage disputes
- Claims tied to AI-created content
- Cybercriminals using AI-generated messages in phishing attacks
These issues may affect more than one insurance policy at the same time. For example, a data breach or attack tied to AI software may lead to disputes involving cyber coverage or business liability insurance.
Existing policies may not fully apply
Many business insurance policies do not directly mention AI tools or AI-related operations. After a claim, insurers may dispute whether current policy language applies to losses tied to AI use.
Insurers may also question how your company handled cyber risk or what it shared during the insurance application process. Some carriers now ask more questions about data protection and outside technology providers when they review applications.
Disputes may also arise when companies adopt AI tools after coverage begins. In those cases, insurers may argue that the company’s risk changed after the policy took effect.
Insurers are asking more questions
Insurance carriers are paying closer attention to how businesses manage AI-related risks. When reviewing applications, insurers may examine whether your company has policies and controls addressing issues such as:
- Data security policies
- Oversight of outside AI vendors
- Employee access limits for sensitive information
- Internal rules for AI use
- Plans for cyber events and data breaches
Companies in construction, hospitality, biotech and technology may receive closer review because those industries regularly handle sensitive business information or private systems.
AI use may change future claims
AI use continues growing faster than many insurance policies evolve. As AI-related claims increase, insurers will likely keep changing how they review cyber risk and insurance applications.
If your company relies heavily on AI tools, a future claim may involve questions that did not exist a few years ago. After a cyber event or major loss, insurers may closely examine how your company used AI tools, worked with vendors and handled private data.