There are few bigger topics today than AI, as organizations across every industry use the technology to work more efficiently and drive home their competitive advantage. While debates on AI’s future continue, this latest revolution is having a clear impact on business – and insurance is evolving alongside it.
Here are five key talking points on why affirmative AI cover is so important for your clients.
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AI is becoming part of business as usual
AI is integral to modern business activities. From writing emails to processing payments, smart AI functions are increasingly embedded and can sometimes be operating without the human user realizing it. In other words, almost every business is an AI user and so carries some AI exposure.
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AI is escalating existing risks
AI is often amplifying existing risks as organizations increasingly rely on it in their day-to-day operations. For example, a publishing company that relies on AI to create content may face heightened intellectual property (IP) risks if AI generated outputs infringe third-party rights.
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Clients want certainty they're covered
To embrace AI with confidence, businesses need to know their insurance is there to respond if something goes wrong. This reality is driving the need for affirmative AI cover in policies.
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Affirmative cover removes ambiguity
By explicitly defining coverage in the policy wording, affirmative AI language completely removes the ambiguity of a ‘silent AI’ approach. This means clients don’t need to rely on assumptions or interpretations when a claim occurs.
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How policies approach AI is a key differentiator
Not all AI coverage is the same. Brokers should look closely at whether a policy is silent on AI, applies exclusions or provides the affirmative cover today’s businesses need.
The key to greater confidence
Clients need confidence in how their policy will respond when AI is involved in a claim. That’s where affirmative cover comes in, helping to reduce ambiguity and foster innovation.
At CFC, we’ve introduced affirmative cover across a number of products. Contact your underwriter to find out more.
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