As businesses increasingly rely on AI for customer service, decision-making, and everyday operations, new liability questions are emerging.
An AI-generated error, data breach, or inaccurate recommendation could have implications for cyber, E&O, or general liability coverage, depending on the circumstances.
Insurers are beginning to address these exposures through evolving policy language, endorsements, and coverage clarifications. For brokers, understanding how clients use AI, what information it can access, and what oversight is in place is becoming an important part of assessing their overall risk profile.
It's also worth remembering that AI-generated coverage interpretations are not always accurate. Reviewing policy wording and discussing uncertainties with an underwriter remain essential when navigating unfamiliar exposures.
Using AI responsibly starts with knowing its limits.
AI can be a great tool for organizing information, drafting correspondence, and researching unfamiliar topics. However, a few precautions can make all the difference when working with insurance information.
A few best practices to keep in mind:
Protect client information: Use company-approved tools and avoid entering confidential information into unapproved AI platforms.
Verify the output: Always cross-check coverage information against the actual policy wording and endorsements.
Keep human oversight: AI can assist with research and preparation, but coverage interpretations and professional recommendations still require human review.
Not getting the answer you're looking for from AI?
Sometimes a conversation with an experienced underwriter is exactly what you need.
Whether you're working through an unusual exposure or have questions about complex coverage, our team is always happy to help you explore the options.
Reach out to us today: info@huddleuw.com