Does tech E&O insurance cover AI?

What does tech E&O insurance cover?

Tech E&O pays claims from clients who say your technology product or service failed them and cost them money. It typically pays defense costs and damages, and is often sold in one policy with cyber insurance.

The claims behind it are familiar: a bug, an outage, missed specifications, or a feature that did not do what the contract said. Tech E&O is a form of professional liability, written for software, platforms and other tech services.

It is different from general liability, which covers bodily injury and property damage, and from cyber, which is built around data breaches and attacks. For a software company with an AI feature, tech E&O is usually the policy closest to the risk that the feature gets something wrong.

Does tech E&O cover AI mistakes?

It depends on the wording. A policy that never mentions AI may still treat an AI error as an ordinary failure of your product or service, but the insurer can argue the point.

Silent wording is common in policies written before generative AI. Wording that names AI removes the doubt, in either direction:

The exclusion trend reaches E&O. A Trades Coverage review of admitted-market filings through 31 July 2026, reported by Beinsure, counted 4,078 filed adoptions of generative AI exclusion forms, 3,955 of them in lines such as general liability, umbrella and excess, package, businessowners and E&O⁵. The count does not show whether an exclusion was attached to an issued policy, and it does not capture the non-admitted market⁵.

Which insurers add AI cover to tech E&O?

Several insurers have written AI into tech E&O, either by endorsement or by rewriting the policy. These are the ones in our register, plus AI policies built on a tech E&O base.

• BBeazleyAffirmative AI wordingLimit not publishedHow to buy not stated
• CCFCAffirmative AI wording across seven productsLimit not publishedBuilt into CFC products
• HHiscoxTechnology Professional Indemnity with affirmative AI coverLimit not publishedHow to buy not stated
• CCounterpartAffirmative AI CoverageLimit not publishedThrough brokers
• CCorgiModular AI coverage on tech E&OLimit not publishedOnline, direct
• EEmbrokerArtificial Intelligence Coverage Endorsement$150Kfor algorithm removalOnline, direct
• VVouch and HiscoxAI endorsement on E&O, with CorixLimit not publishedThrough Vouch
• RRelm InsuranceNOVAAILimit not publishedLicensed brokers
• CChaucer and ArmillaVanguard AI$25M+AI aggregate, alongside $10M cyberSurplus lines brokers

Beazley's affirmative AI wording, dated 17 September 2026, states that AI-related risks sit within its Full Spectrum cyber cover so clients do not have to infer it¹. Some trade press called it the 'AI Clarifying Endorsement' and read it as covering attacks that use AI, but Beazley's own pages do not limit it that way^{6, 7}.

Hiscox rewrote its UK technology professional indemnity wording so that client claims arising from the insured's use of AI, including generative AI, are expressly covered; the earlier wording did not specifically address them⁸. The new wording is form 22413 WDPROF-UK-TEC(2), replacing WD-PROF-UK-TEC(1)⁹.

Vouch says it can place E&O for AI companies with an AI-specific endorsement from Corix, which it describes as a division of Hiscox. It lists IP claims over training data or model outputs, bias and discrimination claims, regulatory defence costs and errors in AI model performance, and states no limits¹⁰.

CFC's AI wording spans seven products, including Tech E&O and Professional Liability, and its page states no limits or territories². Counterpart added a technology E&O insuring agreement alongside explicit cover for errors by AI tools in its small-business professional liability lines¹¹.

Relm's NOVAAI and Vanguard AI build on a tech E&O base. NOVAAI is a cyber and tech E&O policy for companies that develop and sell AI software¹². Vanguard AI pairs Chaucer's cyber and tech E&O with Armilla's standalone AI policy under agreed rules for splitting mixed losses, with the aim of stopping AI claims from eating into the cyber or tech E&O limits¹³.

Can you buy tech E&O with AI cover online?

Yes. Corgi and Embroker both sell online and direct, and both are aimed at startups and tech companies.

Corgi sells AI coverage modules that attach to its tech E&O policy, so buyers choose the AI exposures that fit, alongside a startup package quoted online¹⁴. Insurance Journal reported that it is not a standalone policy and works with existing tech E&O¹⁵. Corgi says availability varies by jurisdiction and does not list the states¹⁴.

Embroker's Artificial Intelligence Coverage Endorsement has been included automatically on eligible tech E&O and cyber quotes since 5 August 2025^{16, 17}. It confirms that AI-delivered services and AI-integrated products are in scope, and covers claims over biased AI output, regulatory probes into how AI is built or used, and the cost to fix or remove a flawed AI system at a client's request¹⁶.

Embroker caps algorithm-removal expense at $150,000 and says other AI claims get full policy limits¹⁶. The AI startup insurance guide shows how tech E&O fits with cyber and D&O as a company grows.

What does tech E&O often leave out for AI companies?

Even with AI wording, tech E&O is built for claims by clients. Some AI losses often fall outside it unless the wording adds them:

• Your own losses when a model underperforms. Mosaic Insurance and Munich Re's aiSure team sell separate cover for financial losses when a model misses defined performance thresholds, meant to sit alongside cyber and tech E&O¹⁸.
• The cost of pulling your own AI offline. Beazley's AI Voluntary Shutdown Endorsement, written for its Full Spectrum Cyber policy, is aimed at this⁷.
• AI regulatory investigations and fines. Embroker's endorsement adds regulatory probes into how AI is built or used¹⁶, and Beazley's AI Regulatory Defence & Penalties Endorsement responds to investigations or fines after unintentional misuse of AI¹⁹. Whether a fine is insurable depends on local law.
• Bodily injury and property damage, which tech E&O generally leaves to general liability. Trade press reported that Verisk's ISO unit issued optional forms that let carriers remove generative AI from that cover²⁰.
• Training-data and copyright disputes, which may need specific wording. AXA XL's generative AI endorsement to its CyberRiskConnect policy names failure to secure usage rights to copyrighted or licensed material²¹.

How do you check whether your tech E&O covers AI?

Read four parts of the policy. The coverage checker also shows which policy an AI use is likely to land on and which exclusions to look for there.

• The definition of professional services or products: does it describe what your AI feature does?
• The exclusions: search for 'artificial intelligence', 'generative AI', 'machine learning' and 'algorithm'.
• The endorsements: an AI endorsement may add cover, cap it with a sublimit, or both.
• Contractual liability: if you promise customers accuracy levels, check whether liability you accept by contract is excluded.

AI Insurance Tracker does not sell insurance. Ask a licensed broker how your policy would treat a specific AI claim before you sign a customer contract that relies on it.

For the wider market, see AI liability insurance. For false outputs in particular, see AI hallucination insurance.