---
title: "Does Tech E&O Cover AI Hallucinations?"
description: "Tech E&O may cover an AI output error when a customer’s claim fits insured services; AI use alone does not establish coverage."
canonical: "https://spot.insure/insurance-faq/professional-liability/does-tech-eo-cover-ai-hallucinations"
page-type: "faq-question"
updated-at: "2026-09-25"
---

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# 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.

## Related Questions

- [Does Tech E&O Cover Intellectual Property Claims?](https://spot.insure/insurance-faq/professional-liability/does-tech-eo-cover-intellectual-property)
- [Does a SaaS Business Need E&O Insurance?](https://spot.insure/insurance-faq/professional-liability/saas-eo-insurance)
- [What Does Software Company E&O Insurance Cover?](https://spot.insure/insurance-faq/professional-liability/software-company-eo-insurance)
- [Does an AI Company Need E&O Insurance?](https://spot.insure/insurance-faq/professional-liability/ai-company-eo-insurance)

## Related Coverage

- [Technology errors and omissions (E&O)](https://spot.insure/coverage/technology-errors-omissions)

## Sources

1. [Professional Liability – US Direct Errors and Omissions Insurance](https://www.hiscox.com/documents/pl-sample-policy-wording.pdf). Hiscox Inc. specimen; About this Policy / Coverage for Claims Made Against You; I.A Insuring Agreement; I.B Defense; I.C Settlement; II.A Notice of Claims; II.C Optional Extended Reporting Period; III.A, III.K, III.M, III.R, III.S Exclusions; IV.A–B Limits and Deductible; VI.O Professional Services; VI.U Wrongful Act. Accessed 2026-09-25.
2. [Technology Errors and Omissions Insurance](https://www.thehartford.com/professional-liability-insurance/errors-omissions-insurance/technology). The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25.

More answers: [Professional Liability, E&O and Tech E&O FAQ](https://spot.insure/insurance-faq/professional-liability).

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