As more businesses use AI across the value chain, they become more vulnerable to liabilities from system failure, bad advice, or bias profiling.
This has led to the creation of AI liability insurance products, which are both a risk and an opportunity for insurers
In May 2026, insurance startup Corgi launched a product that aims to cover businesses for these negative outcomes. GlobalData’s 2025 SME Survey found that SMEs wanted to be covered for a range of potential threats—all the risks we surveyed were cited by over a third of respondents. Legal fees around lawsuits from AI-related decisions were the most popular feature, with 54.1% of SMEs selecting it.
The level of risk is so high for insurers, as there are so many different areas of loss to cover. As we are still at an early stage of AI adoption, there is little underwriting and claims data for insurers to use in creating and pricing policies. Across many of these categories, a lack of cover could prove expensive for insurers.