Armilla launches AI Liability Insurance

Armilla AI, a startup assessing AI models for safety and trustworthiness, announced the launch of its AI liability insurance policy.

Underwritten by certain underwriters at Lloyd’s, including Chaucer, Armilla’s AI coverage addresses key AI-related exposures by “innovating a novel, broadly affirmative trigger” around the risk of the underperformance of AI applications, such as the failure of the AI solution to perform as intended, generate critical errors, hallucinations or inaccuracies leading to damages. The policy covers legal costs and liabilities caused by AI failures.

“Businesses are racing to deploy AI, but their risk management and insurance tools haven’t kept pace. There’s a growing concern of ‘silent AI cover’ – the uncertainty of whether existing policies will respond to AI-specific failures, potentially mirroring the early, costly lessons of cyber risk. Our AI Liability Insurance provides clear, affirmative coverage. It’s built from the ground up to address the specific ways AI can fail, giving businesses the confidence to innovate responsibly.” – Karthik Ramakrishnan, CEO of Armilla.

“The proliferation of AI technology creates novel challenges that demand innovative insurance solutions. Existing frameworks often leave businesses exposed. We are proud to partner with Armilla, leveraging their distinct technical insight to provide the market with a product that offers much-needed clarity and certainty for companies navigating the complexities of AI adoption.” – Nasra Ahmed, Senior Innovation Manager at Chaucer.