Hiscox UK has launched an updated insurance offering for technology businesses, now featuring clear, affirmative cover for claims connected to artificial intelligence. This move positions Hiscox as one of the first UK insurers to provide such explicit coverage, addressing the evolving risks that technology companies face as they develop, deploy, or advise on artificial intelligence systems. The updated professional indemnity product uses newly drafted wording to directly reference exposures linked to artificial intelligence, reflecting the sector´s rapidly growing reliance on these technologies.
According to Adam Atkins, head of technology at Hiscox UK, the industry is at a pivotal moment. While artificial intelligence adoption is fuelling innovation and growth across various sectors, it also introduces significant and novel risks. Atkins emphasised the importance of providing clarity to customers about what is – and isn’t – protected in relation to artificial intelligence, particularly as the technology becomes ubiquitous. Responding to broker and client feedback, Hiscox has introduced four new policy clauses covering scenarios such as network security liability (addressing cyberattack claims affecting client systems), network interruption liability (for service outages impacting customers), personal data claims (for the loss or destruction of sensitive customer data), and injury or property damage arising from technology failures.
The revised wordings are tailored to protect a range of businesses, from those relying on artificial intelligence tools in their day-to-day activities to those building bespoke models for others or offering strategic advice around artificial intelligence adoption. Hiscox’s announcement comes at a time of rising demand for certainty and transparency – both from businesses eager to integrate artificial intelligence and from the UK government, which is promoting greater artificial intelligence uptake. The updated cover includes scenarios where, for example, a company is held liable if an artificial intelligence-powered output leads to a contractual failure or if an artificial intelligence model supplied to a client underperforms or does not meet specification. Hiscox’s new policies aim to set a benchmark for transparency and help clients future-proof against rapidly changing technological risks in the artificial intelligence landscape.
