HSB introduces AI liability insurance for small businesses

Specialty insurer HSB introduced a new artificial intelligence liability insurance coverage that protects businesses from lawsuits resulting from the use of AI technologies.

Designed for small and medium-sized companies, HSB AI Liability Insurance can pay for AI-related losses that some General Liability policies exclude, including bodily injury, property damage, and advertising injury for claims stemming from AI-generated advertising, marketing, blogs, and social media.

Pending approval by insurance regulators, the coverage will be added to the business policies of insurance carriers that partner with HSB. The insurer does not offer this product directly to businesses.

“All types of businesses are using AI to do things more quickly and efficiently. At the same time, the AI transformation brings new legal and financial exposures. Business owners may wonder, am I protected? AI insurance helps remove that uncertainty by filling the gaps in coverage, so businesses can stay ahead of emerging risks.” – Timothy Zeilman, global head of product ownership for HSB, part of Munich Re Group.