Hiscox UK Introduces Explicit AI Claims Coverage in Technology Insurance
Hiscox UK has updated its insurance offering for technology businesses to include explicit coverage for artificial intelligence (AI)-related claims. This makes Hiscox one of the first insurers in the UK to provide clear, affirmative cover specifically addressing AI risks through dedicated policy wording.
The professional indemnity product now clearly covers exposures arising from AI use — whether a business relies on AI for daily tasks, builds AI models for clients, or advises on AI tool implementation.
AI Risks Demand Clear Insurance Solutions
Adam Atkins, head of technology at Hiscox UK, explains the need for this update: “AI’s increasing presence in technology sectors brings new risks. It’s essential we are upfront with customers about what is and isn’t covered.”
As AI adoption grows, so does the potential for claims related to its errors or failures. Hiscox’s approach addresses this by proactively clarifying coverage, helping businesses manage their exposure confidently.
New Clauses Address Common Loss Scenarios
Based on client feedback, Hiscox has introduced four new clauses targeting frequent loss areas:
- Network Security Liability: Covers claims from cyber attacks affecting client systems.
- Network Interruption Liability: Protects against claims from digital disruptions impacting customers.
- Personal Data Claims: Provides cover for lost or destroyed customer data.
- Injury and Property Damage: Addresses claims arising from technology failures causing physical harm or damage.
Examples include cases where a client depends on AI-generated results to fulfill a contract but the AI output fails, or when an AI model developed for a customer does not meet the agreed specifications.
Meeting Market Needs as AI Adoption Grows
Atkins adds, “With government ambitions to accelerate AI use, more companies will integrate AI tools. Clear, comprehensive insurance cover for AI risks will become increasingly essential.”
Technology insurers and risk managers should consider how AI-related exposures could affect their portfolios and clients. Explicit coverage clauses like these help reduce ambiguity and improve risk transfer.
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