FCA authorised · FRN 724952 0117 325 0027Quote & buy →
AI insurance
AI insurance is priced on what your AI does, how autonomously it acts, who relies on it, your turnover and US share, and the cover and limit you choose. There is no standard price list, so the clearer your description and evidence of controls, the more accurately an insurer can rate the risk.
Part of: AI insurance UK
In short
There is no fixed price for AI insurance. Insurers rate each firm on what its AI does and how much it acts without human review, the sector and clients relying on it, turnover and the share from the USA and Canada, the limit of indemnity and excess, contract terms, controls such as human review, testing and logging, claims history, and which of professional indemnity, cyber, product or public liability and IP infringement cover it takes. Preparing a precise description and evidence of controls helps you get accurate terms.
AI insurance is underwritten case by case. Two firms with the same turnover can present very different risks: one uses AI to draft marketing copy that a person checks, the other sells a model that approves loans with no human in the loop. Under section 7(3) of the Insurance Act 2015, a circumstance is material if it "would influence the judgement of a prudent insurer" in deciding whether to take the risk and on what terms. The factors below are the ones that most often shape those terms. We do not publish prices, because any figure without your details would mislead.
The starting point is the job the AI does and what happens if it gets it wrong. Underwriters usually look at whether output is advisory or acted on automatically, and how quickly an error could spread.
| How the AI is used (illustrative) | What an underwriter is likely to focus on |
|---|---|
| Drafts content or analysis that a qualified person reviews before use | The quality of that review and who signs off |
| Recommends decisions to a client, who decides | How limitations are explained, and the contract terms |
| Makes or executes decisions with little or no human review (payments, approvals, code changes) | Permissions, limits, monitoring and how fast errors are caught; see AI agent insurance |
| Talks directly to the public | Disclosures, guardrails and escalation; see AI chatbot insurance |
| Is built into a physical product | Injury and property damage potential, testing and recall plans |
The same tool carries different exposure depending on who uses it. AI used in recruitment, credit decisions, education or life and health insurance pricing falls within the EU AI Act's Annex III high-risk areas, and those uses also attract scrutiny under UK equality, data protection and financial services law. Health, financial services and HR work tends to draw closer questions; see AI insurance for fintech, AI insurance for health and medtech and AI bias and discrimination claims. Large or regulated clients can also raise the stakes, because a single error can affect many of their customers.
Turnover is the usual measure of how much work you do, so it is a common rating base; see how turnover affects your premium. Insurers also ask how much of it comes from the USA and Canada, because claims brought there are generally more expensive to defend and settle. That share can change the terms, any separate limit for US claims, or whether US cover is offered at all. The reasons are covered in US cover for UK AI firms.
The limit of indemnity is the most the policy pays, and a higher limit usually means a higher premium. Often the limit is set by a client contract rather than by choice. The excess is the part of each claim you pay; a larger excess can reduce the premium, but you need the cash to meet it. Whether defence costs sit inside or on top of the limit also affects price and protection; see costs inclusive vs costs in addition.
Insurers look at what you have promised clients. Uncapped liability, broad indemnities, warranties that AI output will be accurate or non-infringing, and promises about how client data is used can all widen the risk, and liability you take on by contract beyond what you would owe anyway is commonly excluded. A sensible cap tied to your limit, and clear wording on client responsibility for checking output, generally helps. See AI contract clauses and indemnities.
Evidence of good controls does not assure a better premium, but it gives the underwriter something concrete to rate.
| Control | Evidence you can show |
|---|---|
| Human review | Who reviews what, sign-off records, when the AI is allowed to act alone |
| Testing and evaluation | Pre-release tests, accuracy and bias checks, red-teaming, version control |
| Logging and monitoring | Logs of prompts, outputs and actions; alerts; how long logs are kept |
| Data protection | A data protection impact assessment: the ICO says that "in the vast majority of cases" AI use involves processing likely to be high risk (ICO guidance) |
| Security | Alignment with the NCSC's guidelines for secure AI system development (27 November 2023), which cover secure design, development, deployment, and operation and maintenance |
| Governance | An AI policy and owner; certification to ISO/IEC 42001:2023, the AI management system standard, if you have it |
| Incident response | A plan for withdrawing or correcting a faulty model and telling clients |
Our guide on what to document about AI use goes into this in more detail.
Past claims and known circumstances that could lead to a claim matter, and must be disclosed; see does a claim increase your premium? The other big driver is how many cover options you take. Professional indemnity, cyber, product or public liability and IP infringement each answer a different AI exposure, and each adds to the premium. Buying what your exposures need, rather than every option, keeps the cost proportionate. Premiums also carry Insurance Premium Tax, at a standard rate of 12% (HMRC).
Apex has an AI insurance scheme with an insurer in which the policy names your specific AI work as insured activity, not a generic business description. You choose from professional indemnity, cyber, product or public liability and IP infringement cover, so several AI exposures can sit in one policy, and US cover is available subject to the insurer's underwriting and the policy terms. To quote we need:
You can start an AI insurance quote online; it takes a few minutes. Having key contracts and evidence of controls to hand helps answer any follow-up questions, and supports the fair presentation of risk that section 3 of the Insurance Act 2015 requires. For an overview, see AI insurance in the UK.
There is no standard price. The premium depends on what your AI does and how autonomously, your sector and clients, turnover and US share, the limit and excess, your contracts, your controls, your claims history and which cover options you take. A broker can give a figure once the insurer has those details.
Claims brought in the USA and Canada are generally more expensive to defend and settle, so insurers ask how much of your turnover comes from there. It can affect the premium, the terms, any separate limit for US claims and whether US cover is offered.
It can help, but there is no set discount. Documented human review shows the underwriter that errors are more likely to be caught before they cause loss. It is weighed alongside testing, logging, contracts and your claims history.
Not automatically. ISO/IEC 42001 certification is good evidence of AI governance, and it can make the underwriter's assessment easier, but insurers do not apply a fixed reduction for it. Practical controls such as testing, review and logging matter as much.
A precise description of your AI work, your address, your turnover including how much comes from the USA and Canada, and the limit of indemnity you need. Contracts and evidence of controls help with follow-up questions. The online form takes a few minutes.
Tell us what your AI work is, where you are based, your turnover and the limit you need. It takes a few minutes online, and a broker will come back to you with options. Or call 0117 325 0027.
Start an AI insurance quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
