Hiscox UK has updated its professional indemnity product for technology businesses to include affirmative cover for AI-related claims.

The updated policy addresses a range of AI-related exposures, including routine operational use, model development, and client advisory work.

Adam Atkins, head of technology at Hiscox UK said insurers must increasingly recognise and address AI-related risks – particularly in the technology sector, where its use is already widespread.

“While the rapid take-up of AI has created considerable opportunity, it also carries additional risks, so we need to be proactive and clear with customers about whether these risks are covered,” he added. “This need for clarity is compounded by the UK government’s ambition to accelerate AI adoption. As more AI businesses emerge and companies increasingly integrate these tools, the demand for clear and comprehensive cover will only grow.”

Example scenarios the new wording would cover include:

-a customer uses AI to complete a contract and it goes wrong;
-a customer relies on the output of AI to deliver on a contract and it goes wrong;
-a customer inputs incorrect information into an AI tool, uses the output to complete a contract and it leads to errors;
-a customer builds an AI model for a client and it does not work to the agreed specification; and
-a customer provides advice on the viability of using a particular AI tool and that advice is found to be negligent.

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