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AI insurance is insurance that expressly covers liabilities arising from building, selling or using artificial intelligence, usually across PI, cyber, product or public liability and IP infringement. It matters because a policy that says nothing about AI leaves cover for an AI claim open to argument.
Part of: AI insurance UK
In short
AI insurance is cover written to include AI activity expressly, rather than relying on general wording. It is usually a combination of professional indemnity for financial loss from AI output, cyber for data and security events, product or public liability for injury and damage, and IP infringement cover for training data and output. Policies that neither include nor exclude AI are called silent AI. To buy it, describe your AI work precisely, declare US and Canadian turnover, choose your options and limit, and check the exclusions.
AI insurance is insurance whose wording expressly covers liabilities arising from artificial intelligence: the AI systems a business builds or sells, the AI services it provides, or the AI tools it uses in its work. It is not a single standard product. It is usually a combination of existing covers, chiefly professional indemnity, cyber, product or public liability and IP infringement, written so the policy names the AI activity as insured.
The key word is expressly. A general policy may or may not respond to an AI loss depending on its wording. AI insurance reduces that uncertainty by naming the AI work. A growing number of policies in the market now give affirmative AI cover. For the full picture, see AI insurance in the UK.
Examples are illustrative. Whether a policy responds depends on its terms and the facts.
| Exposure | Illustrative example | Cover that usually responds |
|---|---|---|
| Wrong or harmful AI output causing a client financial loss | An AI forecasting model built for a client overstates demand and the client over-orders stock | Professional indemnity (does PI cover AI mistakes?) |
| An AI agent taking a wrong action | An agent sends a supplier payment to the wrong account | Usually PI, sometimes cyber, depending on cause (AI agents insurance) |
| Data exposure or manipulation of an AI system | A chatbot is tricked into revealing customer records | Cyber (cyber and AI risks) |
| Injury or property damage from an AI product | An AI-guided machine damages a customer's premises | Product or public liability (AI product and public liability) |
| IP infringement in training data or output | Generated marketing copy reproduces a competitor's protected text | IP infringement cover (AI IP infringement insurance) |
Statements made by AI can bind the business that deploys it. In Moffatt v Air Canada, 2024 BCCRT 149, a Canadian tribunal held an airline liable in negligent misrepresentation for its website chatbot's wrong answer about bereavement fares. The decision is not binding in the UK. In the EU, the new Product Liability Directive treats software, including AI systems, as a product and applies to products placed on the market after 9 December 2026. For more on how IP cover works generally, see IP infringement cover.
The terms mirror silent cyber. The PRA's supervisory statement SS4/17 describes non-affirmative cyber risk as exposure in policies that do not explicitly include or exclude cyber cover, and expects insurers to manage it through explicit cover, exclusions or specific limits. AI is following a similar path. See affirmative AI cover vs silent AI, silent cyber and affirmative cover and AI exclusions and clauses.
A specialist broker can compare wordings and check that the AI activity is named. You can start an AI insurance quote online in a few minutes.
See also: What is silent AI? · Who is liable for AI hallucinations? · Agentic AI liability
AI insurance is insurance that expressly covers liabilities from building, selling or using artificial intelligence. It usually combines professional indemnity, cyber, product or public liability and IP infringement cover, with the AI activity named in the policy. Cover is always subject to the policy terms.
Not usually. It is normally a package of existing covers written to name AI activity, rather than a new class of insurance. Some businesses need a dedicated AI policy; others need their existing PI or cyber wording to address AI expressly.
Silent AI is AI exposure in a policy that neither expressly includes nor excludes it. The term mirrors silent cyber. Silent cover may or may not respond to an AI claim, so businesses with material AI activity increasingly look for affirmative wording.
Businesses that build or sell AI, AI consultants and integrators, and professional firms that use AI in client work. The right mix of cover depends on whether the main risk is financial loss, data, physical harm or IP.
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.
