What Insurance Covers AI Errors and Hallucinations?
Professional or technology E&O may cover a client’s claim that an AI service caused financial loss; cyber and media policies address different allegations.
A customer may allege that an AI-enabled service gave inaccurate information or failed to perform as contracted. Texas DOI describes professional liability as covering service-related claims, but the policy must include the AI service and the specific harm alleged.
A published false statement may raise media or defamation issues, while exposed personal data may trigger cyber privacy coverage. Ask insurers to map those scenarios separately and identify exclusions for intentional conduct, known errors, or particular technologies.
