Does Your Insurance Cover Your AI Processes?
You have cyber insurance so you are covered, right?
Well, maybe. And, it will be very important at renewal time to see if it still covers the risk created by decisions that are made by AI agents.
While carriers have “stabilized” coverage over ransomware, AI is too new and is changing too quickly. Insurance loves very small incremental changes. That is not AI.
If you use software that makes decisions on behalf of your customers, like, for example, healthcare or insurance – but not limited to that – and your customer is harmed in some way as a result, maybe financially or health wise, it is not a given your insurance will cover you. They may. But they may not. We all know how rewarding it is to sue your insurance carrier (not).
You should carefully review two thing –
- Your policy’s EXCLUSIONS, specifically with respect to your use of AI, whether that is internally developed or commercially purchased.
- What your policy says your obligations are regarding your use of AI in your systems. For example, does it say you need to conduct a risk assessment prior to deploying an AI driven application or some other requirement.
If you need assistance, please contact us.
Credit: Data Breach Today
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