Artificial Intelligence is becoming part of everyday business life. From drafting documents and analysing data to assisting with advice and decision-making, AI tools are increasingly being used by professionals across a wide range of sectors.
What many businesses may not realise is that some Professional Indemnity (PI) insurers are now introducing specific exclusions or restrictions relating to the use of AI.
These exclusions can vary considerably between insurers. Some may exclude claims arising from the development of AI systems, while others may limit or exclude cover where AI-generated outputs are relied upon without appropriate human oversight.
For professionals such as consultants, accountants, solicitors, architects, brokers and other advisers, this raises an important question:
Could the way your business uses AI affect the protection provided by your PI policy?
As AI technology evolves, insurers are taking a closer look at the associated risks, particularly where inaccurate, misleading or biased outputs could lead to financial loss for clients.
The good news is that responsible use of AI, supported by suitable controls and human review, remains acceptable to many insurers. However, policy wordings are changing, and businesses should take the time to understand exactly what is and isn't covered.
Now is a good opportunity to review your Professional Indemnity arrangements and discuss any AI-related activities. The technology is moving quickly, and your insurance programme should keep pace.
Concerned about how AI exclusions could affect your Professional Indemnity cover? Edgewater can review your existing arrangements and help you understand any restrictions, exclusions or gaps in cover. Call us on 01624 654000 or email insurance@edgewater.co.im to arrange a review.
