.svg){kind=icon}
We Appreciate AI – Can We Insure It?
Now that we’ve marked America’s favorite July holiday – AI Appreciation Day, of course – it’s worth reflecting on some of the risks AI-led software poses and the tools that exist to mitigate them.
When we think about AI software risk, it gets even worse than showing up on Zoom with a cat avatar as a face. Threats tech companies face include data breaches, product liability claims, costly bugs and errors, and even intellectual property (IP) claims.
We’ve rounded up the most important types of business insurance for AI and LLM-led companies to consider, what they cover, and why they matter.
Beyond General Liability
The first and broadest type of coverage businesses encounter is general liability insurance. And while that can cover claims related to say, legal fees stemming from property damage, insurance sub-limits and exclusions are part of why we recommend the following policies. General liability coverage can be a practical primary insurance layer for tech companies, but it rarely covers the breadth of risk scenarios tech companies face.
Errors & Omissions (E&O) Insurance
Sometimes called Professional Liability Insurance, E&O covers claims related to professional errors and negligence. In practice, this kind of claim might arise if a customer thinks your AI software hasn’t performed to their expectations or delivered certain results.
Intellectual Property Insurance
IP coverage is inherently valuable to any company that uses large or disparate data sets to train its language models or tools. Essentially, you want to be covered in case a company whose data you’ve ingested into your LLM claims that your product infringes on or benefits from their IP. The size of potential IP infringement claims makes picking up IP insurance a relative bargain.
Cyber Liability Insurance
Cyber insurance is one of the more straightforward policies AI software companies can choose, but that doesn’t make it any less necessary. Like IP insurance, cyber liability insurance is essential for AI companies because they handle cloud-hosted and customer data, both of which are vulnerable to cyber attacks, breaches, and loss of data. All of these scenarios can result in legal action from costumes, partners, and investors.
Built-for-Tech Bundles
AI companies can substantially reduce their risks – and grow public appreciation for their products and services – with the right combination of comprehensive business insurance. Teams have the opportunity to save by choosing insurance providers who’ve created their policies with emerging technology use cases in mind.
For most technology companies, the perfect companion to business insurance is compliance automation that helps them signal their security and longevity to customers. That means the ideal insurance provider is one that can also help with compliance and security projects.
Koop’s customer assurance platform helps tech companies seamlessly navigate the complexities of business insurance, regulatory compliance, and security automation in one place.
We provide a comprehensive suite of insurance coverage that includes General Liability, Technology Errors & Omissions, Cyber Liability, and Management Liability coupled with the most cost-effective SOC 2 compliance certification on the market.
Ready to learn more? Visit our website at https://www.koop.ai or drop us a note at hello@koop.ai.
