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Aipedia: Project managers
Usually a PM policy responds to a claim that the PM's advice was negligent, whether or not AI helped produce it, subject to the policy terms. The gaps tend to arise at the cyber and data boundary, in services that were not declared, and where AI clauses appear.
Part of: AI in project management
In short
Project managers have no statutory PI requirement, but appointments usually require cover. PM PI may be written on a civil liability or negligence basis, so a client claim over an AI-assisted programme, forecast or report is commonly handled like any other professional negligence claim. RICS-regulated firms must hold cover meeting RICS minimum limits on the Approved Minimum Wording, which excludes losses from cyber acts and the insured's breach of data protection law and does not mention AI. APM and PMI have made no statement on AI and PI. Answer proposal questions on AI accurately and check how your wording treats it.
PI responds to claims arising from your professional services. A client who says your programme was unrealistic, your cost forecast hid an overspend or your report overstated progress is alleging negligent advice. The fact that AI generated a first draft does not usually change that: the advice was yours. Many PM policies may not mention AI at all, which is sometimes called silent AI; see affirmative AI cover vs silent AI. The general position across professions is in does PI cover AI mistakes?
Non-RICS PMs buy cover to meet appointment requirements. RICS-regulated PM firms must meet the RICS PII Requirements v11, effective 1 July 2025:
| Prior-year turnover | Minimum limit |
|---|---|
| Up to £100,000 | £250,000 |
| £100,001 to £200,000 | £500,000 |
| Over £200,000 | £1,000,000 |
Cover must be with an RICS listed insurer on the Approved Minimum Wording, which includes the IUA 04-017 cyber and data protection endorsement. It excludes losses from a cyber act or failure of a computer system and from the insured's breach of data protection law, but says cover is not restricted solely because a computer system was used. The wording does not mention AI. The RICS AI standard (4.3) requires terms of engagement to state the extent of PI cover for AI use "if available". See the RICS AI standard and PI.
The main gaps are not about AI judgement but about data and systems. If client data leaks through an AI tool, if a breach of data protection law is alleged, or if a system failure corrupts project data, PI may exclude or limit the claim and cyber cover may be needed. Claims by your own staff, regulatory fines and contractual penalties are commonly outside PI as well.
A second boundary is services. PM policies cover the services you declared. If you have started advising clients on which AI tools to buy, or configuring them, that may be technology consultancy rather than project management, and it may need different cover; see managing AI projects for clients. A third is contract: if an appointment makes you warrant the accuracy of AI outputs or give an indemnity for AI use, liability beyond the ordinary duty of care may fall outside PI.
Illustrative scenario. A PM firm answers "no" to an AI question on its proposal because it sees its tools as ordinary software. In fact it uses AI to produce cost forecasts and board reports. After a claim about an AI-assisted forecast, the insurer reviews the proposal and raises the inaccurate answer. Whether that affects cover depends on the policy and the law on fair presentation, but it creates an avoidable dispute.
In a second case, a forecast error is clearly covered as negligence, but the client's claim also includes the cost of investigating whether its data was exposed through the same tool. That element may sit under cyber cover, and if the firm has none, it is uninsured.
Related guides: AI cost forecasting, client data and PM AI tools and APM, PMI and RICS on AI.
Apex arranges PI for project managers. A broker can review your cover and how your policy treats AI-assisted work, and can look at PI and cyber together; see the project managers PI guide and the AI in project management hub.
You must answer proposal questions accurately and make a fair presentation of the risk. If AI drives forecasting, reporting or contract work, it is generally sensible to say so and explain your controls.
The Approved Minimum Wording does not mention AI. It excludes losses from cyber acts and the insured's breach of data protection law, but cover is not restricted solely because a computer system was used. Individual policies may add terms, so check yours.
Possibly not. Data protection breaches and cyber events are commonly excluded or limited under PI and fall to cyber insurance. A breach of confidence claim may be covered by some PI wordings. Check both policies.
No statement on AI and PI was found from APM or PMI as at October 2026. The RICS AI standard is the one professional rule that touches PI, requiring firms to state the extent of AI cover in terms of engagement if available.
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.
Start a PI 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 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.
