Does Cyber Insurance Cover AI?
Sometimes. Cyber policies rarely name AI, so an AI-related loss is covered only if it fits a covered event, like a breach or outage, and dodges the exclusions.
Sometimes. Cyber policies don't usually mention AI, so an AI-related loss is covered only when it fits an event the policy already covers, such as a data breach or system outage, and no exclusion applies. If the problem is an error in an AI service you sell to clients, that's more likely a tech E&O question.
Read the definitions of computer system, security event, protected information and technology services. Then check the exclusions for intellectual-property claims, contractual guarantees and voluntary disclosure of data.
Ask your insurer two things: whether your AI provider counts as a covered vendor, and whether building or deploying AI for clients falls under E&O terms. Describe your real AI use and data flows on the application. A wrong answer there can hurt you at claim time.
