- Lloyd’s of London insurers have introduced coverage for losses resulting from failures of AI tools like chatbots and customer service platforms.
- The policy covers legal fees and damages arising from significant underperformance of AI tools, protecting against lawsuits from customers and third parties.
- Real-world examples highlight the need for such coverage, including incidents involving Money, DPD, and Air Canada with their AI systems.
- Armilla’s policy aims to fill a gap in existing technology coverage by addressing claims related to AI’s adaptive learning and performance degradation.
- The new insurance product may encourage companies to adopt AI technologies, reflecting a shift in recognizing AI’s operational risks and the need for specialized insurance solutions.