Does an AI Company Need E&O Insurance?

California DOI describes professional liability as potentially extending to high-tech companies, and insurers market Tech E&O for technology products and services. That category does not answer whether a model, dataset, or AI service is covered. Describe your role precisely: model developer, application provider, consultant, data provider, or reseller; explain human review, customer uses, and whether outputs inform consequential decisions. Ask the insurer to identify any AI-specific exclusion, endorsement, or underwriting condition in writing. Review privacy, security, copyright, patent, media, contractual-warranty, and professional-services terms as well as claim reporting. Do not assume a generic E&O policy covers every loss arising from an inaccurate or fabricated output.

Document model providers, data sources, testing, monitoring, and human review. These facts help an insurer understand risk and may affect underwriting, but do not themselves create coverage.