Does Tech E&O Cover AI Hallucinations?
Tech E&O may cover an AI output error when a customer’s claim fits insured services; AI use alone does not establish coverage.
An AI hallucination can lead to a customer claim that an insured technology service caused financial harm. The Hartford describes errors and failures in technology products and services, but does not promise coverage for every AI output.
Describe whether you built the model, configured a third-party tool, or advised customers based on its output. Check AI terms, human-review requirements, known limitations, IP, and warranty exclusions.
