Aipedia: Marketing and PR agencies

AI claims against agencies: PI or media liability?

Aipedia, by the Apex broking team · Last reviewed 2026-10-27

AI-related claims against agencies may fall under PI, media liability, cyber or nothing at all, depending on the allegation and the wording. Knowing which policy should respond helps agencies avoid gaps before a claim arrives.

Part of: AI in Marketing and PR agencies

In short

AI claims against agencies cut across categories: negligent work, copyright, trade marks, defamation, misleading ads and data. PI covers breaches of professional duty, while media liability covers content risks such as infringement and defamation; some agency policies blend the two with varying scope. Possible gaps include contractual indemnities, trade mark exclusions, deliberate act exclusions, guarantees and fines, which are generally uninsurable. Many wordings may be silent on AI, and newer ones may add exclusions or conditions. Agencies should map their AI work against each policy.

Why the question matters for AI claims

AI-related claims against agencies rarely fit a single category. One campaign can produce an infringement claim from a photographer, a defamation complaint about a statement, a regulator's finding that the ad misled, and a client claim for wasted spend. Agencies may buy professional indemnity, sometimes with media or IP extensions, and some buy a separate media liability policy. Understanding which policy is meant to respond to which allegation helps avoid gaps and arguments when a claim arrives.

The basic distinction

PI is built around claims alleging a breach of professional duty in the services you provide: negligent advice, errors and omissions. Media liability is built around content you publish or create: infringement of copyright and trade marks, defamation, breach of confidence and privacy. Some agency PI policies blend the two, but the scope of the media element varies widely. There is no statutory or professional-body PI requirement for agencies, so the policy you have is the one you, or your client contracts, chose. For a fuller comparison see PI vs media liability for marketing firms.

Which policy may respond

Type of AI claim	Policy that may respond	Points to check
Client says AI-assisted advice or work was negligent	PI	Professional services definition, consequential loss limits
Copyright claim over AI images, text or music	PI with IP cover, or media liability	IP scope, defence costs only, contractual liability exclusion
Trade mark or passing off claim	Media liability or PI with IP cover	Trade mark exclusions
Defamation in AI-drafted content	PI with defamation cover, or media liability	Sub-limits, knowledge exclusions
Client claim after a banned or misleading ad	PI, possibly media	Fines exclusion, guarantee exclusions
Data claim from AI targeting or email	PI or cyber	Data protection exclusion, how the policies fit together
Regulatory fine	Usually none	Fines generally uninsurable

Where AI creates gaps

Contractual liability. IP warranties and indemnities given to clients may exceed what the policy covers; see AI clauses in agency client contracts.
Trade marks. Some policies cover copyright but exclude trade marks, which matters for AI names, logos and imagery. Getty Images v Stability AI shows that trade mark and passing off arguments can arise from generative outputs.
Fines and penalties. Regulatory fines are generally uninsurable, including under the DMCC Act and PECR, where DUAA raised the maximum to £17.5m or 4% of global turnover according to the ICO. See are AI regulatory fines insurable?.
Deliberate acts. Running fake reviews or using a likeness without consent may fall within dishonesty or deliberate act exclusions.
Guarantees. Promising results from AI content or targeting can trigger guarantee exclusions.
Professional services definition. If your policy describes your services in pre-AI terms, check that AI content creation, automation and AI tools you resell are clearly within it.

AI exclusions to look for

Agency wordings have often been silent on AI, in which case an AI-assisted error is usually treated like any other. Some newer wordings may include AI-specific language: exclusions for claims arising from AI outputs, conditions requiring human review, or definitions that bring AI tools within the insured services. No regulator has published anything on AI and PI for agencies. When reviewing cover, ask whether the policy mentions AI at all, and if it does, whether it narrows or clarifies cover. Agencies that build or sell their own AI products should also consider AI insurance more generally and AI insurance for marketing and creative agencies.

What can go wrong

Illustrative scenario: an agency holds PI with a modest IP extension that excludes trade marks. An AI-generated logo it designed is challenged by a registered mark owner, and the client claims rebrand costs under an uncapped indemnity. The trade mark claim falls outside the IP extension, the indemnity element is considered under the contractual liability exclusion, and only the client's negligent advice allegation is clearly within cover. The agency funds the rest.

How Apex helps: Apex arranges PI for marketing and PR agencies. A broker maps your AI work against both policies and checks how each treats AI-assisted content. See also AI-generated images in ads, AI-drafted press releases and the marketing and PR agencies hub.

Sources

Frequently asked

Do agencies need both PI and media liability?

Not always. Some agency PI policies include broad media and IP cover; others include very little. Whether you need a separate media policy depends on your work and what your PI already covers, which a broker can compare.

Does PI cover AI mistakes if the policy does not mention AI?

Often, yes, in the sense that a claim alleging negligent work may be treated like any other, subject to the policy terms. Silence is not a guarantee, though, so check definitions and exclusions with your broker.

Are ASA rulings covered by insurance?

An ASA ruling is not a claim for damages, so insurance does not usually respond to the ruling itself. A later client claim for wasted costs may be covered by PI, subject to the wording and any guarantee or fines exclusions.

Which policy covers defamation in AI-drafted content?

It depends where your defamation cover sits. Some PR and agency PI policies include it, sometimes with sub-limits; others leave it to media liability. Statements known to be untrue may be excluded.

Check your PI covers how you use AI

Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.

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Apex 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 about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.