Does an AI Company Need E&O Insurance?
Usually yes, if you sell AI models or services: tech E&O answers customer claims that your errors or outputs cost them money, subject to any AI exclusions.
Usually yes, if you sell AI models or AI-powered services to customers. Technology E&O is built for claims that your service error or failure to perform cost a customer money, and AI firms face exactly those claims over inaccurate outputs and customer reliance.
A generic E&O policy won't tell you whether your model, training data or AI application is in scope. When you apply, describe your role, your data sources, where humans review outputs and how customers use them. Then ask the insurer whether the policy carries an AI exclusion or an AI endorsement.
Your own breach-response costs are first-party cyber costs, so add cyber insurance if you hold customer data, and check the privacy, IP and contract terms in both policies.
