Counterpart expands affirmative AI coverage for small businesses

Counterpart announced the expansion of its Affirmative AI Coverage and the addition of a Technology E&O Insuring Agreement to address these emerging risks across its Miscellaneous Professional Liability (MPL) and Allied Health products. Counterpart’s offering targets claims tied to AI-generated errors, misclassified risks, faulty recommendations, and machine bias.

“AI-related risks are rapidly evolving. Coverage is by no means guaranteed by traditional E&O, D&O, Cyber, and CGL policies, which are ‘silent’ on such exposures and may be mitigated through AI-related exclusions or other policy limitations. To avoid any potential gap in coverage, companies should consider affirmative cover for the concentric circles of AI-related liability.” – Ommid C. Farashahi, Insurance Coverage Partner at BatesCarey LLP.

“AI risks have moved from theory to the courtroom. A lot of small business owners and startup leaders are using AI to work faster, process more information, and deliver a higher level of service, but they don’t always see the liability that comes with it. These endorsements give our brokers practical solutions for claims that come from everyday AI use, whether it’s bad outputs, decision errors, or machine-generated bias. As more businesses rely on AI to run and grow, these risks are only becoming more common.” – Mike Muglia, Professional Liability Lead at Counterpart.