AI And Tech Liability: New Insurance Risks In 2026

What Are The New AI And Technology Insurance Risks In 2026?

AI is changing the way businesses create, process and deliver services, which is also changing the risks they need to manage. Businesses using artificial intelligence can face new exposures involving inaccurate outputs, data security, cyber attacks, automated decision-making, third-party AI providers and systems acting in unexpected ways.

There is no single insurance policy that automatically covers every AI-related risk. Depending on how AI is developed or used, relevant protection may involve cyber insurance, professional indemnity, technology insurance, public liability or other specialist commercial covers. The actual response will depend on the policy wording, exclusions, business activity and circumstances of the claim.

The key question for businesses in 2026 is therefore not simply whether they have AI insurance, but whether their existing insurance programme reflects the way AI is actually being used within the organisation.

What This Guide Covers

Artificial intelligence is moving from an experimental technology into everyday business operations. Companies are using AI to analyse information, create content, automate processes, support customers, develop software and make decisions.

That creates opportunities, but it also changes the risk profile of a business.

This guide explores:

• How AI is changing business insurance risks

• What AI liability insurance means

• The difference between AI risk and traditional technology risk

• AI-generated errors and inaccurate outputs

• Data and confidentiality risks

• AI-related cyber attacks

• Prompt injection and manipulation

• Deepfakes and fraud

• Risks created by AI agents

• Third-party AI and technology suppliers

• Professional indemnity implications

• Cyber insurance implications

• Technology liability considerations

• Who could be responsible when AI causes loss

• What UK businesses should review in 2026

Why AI Is Changing Business Insurance Risk

Artificial intelligence is not simply another software tool. The way businesses use AI can change who makes decisions, how information is processed and how quickly an error can spread.

A human employee making an incorrect decision may affect one client or one transaction. An automated AI system can potentially repeat the same mistake across hundreds or thousands of interactions before the problem is identified.

That difference matters from a risk management perspective.

The UK's National Cyber Security Centre has highlighted that the rapid development of AI is changing cyber-risk assumptions and has specifically identified issues such as AI-generated errors, prompt injection, data exposure and vulnerabilities in AI systems.

For businesses, this means that existing approaches to cyber security and insurance may need to be reviewed as AI becomes more deeply integrated into everyday operations.

AI Is Creating New Questions About Liability

One of the biggest challenges with AI is determining who is responsible when something goes wrong.

Imagine a company uses an AI system to provide recommendations to customers. The system produces incorrect information and a customer suffers financial loss as a result.

Several questions immediately arise.

Was the problem caused by the AI model itself?

Was the business responsible for failing to check the output?

Did an employee configure the system incorrectly?

Was the underlying data inaccurate?

Did a third-party AI provider contribute to the failure?

Was there a cyber attack or malicious manipulation involved?

The answer could affect which insurance policy is relevant.

This is why AI liability insurance UK should not be viewed as a simple standalone solution. AI-related claims can cross traditional insurance boundaries depending on what happened and how the technology was being used.

The Important Difference Between AI Risk And AI Liability

AI risk refers to the possibility that an artificial intelligence system could create a harmful outcome.

AI liability is the potential legal and financial responsibility arising from that outcome.

These are not necessarily the same thing.

A business might identify that an AI system could generate inaccurate information, for example, but a liability claim would depend on whether that error actually caused loss, who was responsible and whether the business had a legal obligation to compensate the affected party.

This distinction is important when reviewing insurance.

Businesses should not assume that identifying an AI risk automatically means a particular insurance policy will respond. The circumstances of the incident and the specific policy wording remain critical.

AI Is Also Changing Existing Insurance Risks

The emergence of AI does not mean every AI-related incident requires an entirely new insurance product.

In many cases, AI changes an existing risk.

A professional consultancy using AI could face a professional indemnity issue if inaccurate AI-assisted advice causes financial loss to a client.

A company storing confidential information in an AI platform could face a cyber security or data-related incident.

A technology company developing an AI-powered product could face technology liability concerns if its system causes financial loss for customers.

A business using AI-generated content could face contractual or intellectual property disputes depending on how that content was created and used.

The insurance question therefore starts with understanding the underlying business activity rather than simply asking whether the company uses AI.

A New Insurance Question For UK Businesses

The traditional question has often been:

What technology does your business use?

With AI, businesses increasingly need to ask:

What decisions or actions does that technology now influence or perform?

That distinction matters.

An AI tool used to help an employee draft an internal email presents a different risk from an AI system that automatically approves transactions, communicates with customers, assesses applications or interacts with production systems.

The greater the level of automation and decision-making, the more important it becomes for businesses to understand the risks created by that technology and discuss them with their insurance broker.

Artemis Perspective

For technology businesses, insurance should reflect the actual way technology is developed, delivered and used.

Artemis already provides tailored insurance solutions for technology companies ranging from start-ups to established businesses. Artemis Insurance Brokers Ltd.

As AI becomes part of those businesses, reviewing existing technology and cyber insurance arrangements becomes increasingly important.

What This Really Means For Businesses

AI is not replacing traditional insurance risks. It is changing how those risks can arise, how quickly they can spread and potentially who may be involved when something goes wrong.

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What Is AI Liability Insurance?

Understanding Insurance Protection For AI-Related Business Risks

AI liability insurance is a broad term used to describe insurance protection that may respond to certain claims arising from the development, supply or use of artificial intelligence systems. It is not necessarily a single standard insurance product available to every business.

The appropriate protection depends on what the business does with AI, whether it develops its own technology or uses a third-party system, the type of data involved and the potential consequences if the technology fails.

For some businesses, AI-related risks may sit within existing technology insurance, professional indemnity or cyber insurance arrangements. For businesses developing or supplying AI systems, more specialist technology or liability considerations may need to be discussed with an insurance broker.

The important point is that businesses should assess the actual risk rather than assume that simply having a cyber or technology policy means every AI-related incident is automatically covered.

What Could AI Liability Insurance Potentially Address?

AI can be involved in many different business activities, so the potential insurance exposure can vary considerably.

An AI system might provide professional recommendations, process customer information, generate content, automate decisions or interact directly with other software.

If something goes wrong, the resulting claim could involve financial loss, data exposure, system disruption, third-party property or other consequences.

Depending on the circumstances and policy wording, relevant insurance considerations could therefore include professional errors, cyber incidents, technology failures and third-party liability.

This is why a business should look at the full chain of risk, from the AI model and data being used to the decisions made by the business and the final impact on customers or other third parties.

AI Liability Is Different From Cyber Insurance

AI liability and cyber insurance are closely connected, but they address different questions.

Cyber insurance is primarily concerned with risks arising from cyber incidents, such as data breaches, malicious attacks, ransomware and certain forms of technology-related disruption.

AI liability is broader as a concept. An AI-related claim could occur without a conventional cyber attack.

For example, an AI system might produce an incorrect recommendation because of an inaccurate output rather than because an attacker compromised the system.

In another situation, an attacker could manipulate an AI application through a cyber technique such as prompt injection, creating a situation where cyber and AI risks overlap.

The relevant insurance response would depend on the circumstances and the specific policy wording.

AI Liability And Professional Indemnity

Professional indemnity insurance may become particularly relevant when AI is used to provide professional services or advice.

Consider a consultancy that uses an AI system to assist with client recommendations. If an unchecked AI output contributes to incorrect advice and the client subsequently suffers financial loss, the resulting claim could raise professional indemnity considerations.

The important issue is not simply that AI was involved.

The question is whether the business provided a professional service and whether an error, omission or negligent act within that service contributed to the client's loss.

This is one reason professional firms adopting AI should review how their technology is being used rather than assuming their existing PI arrangements automatically cover every possible AI scenario.

AI Liability And Technology Insurance

Technology businesses developing AI products can face a different set of exposures.

An AI developer may create a system that customers integrate into their own operations. If that technology behaves unexpectedly, causes disruption or contributes to financial loss, questions can arise around contractual responsibility, technology performance and third-party claims.

Technology insurance can be relevant to businesses operating in this space, but the precise protection available will depend on the nature of the business and the policy.

Artemis provides tailored insurance solutions for technology companies ranging from start-ups to established businesses, making technology risk a natural area for businesses to discuss when reviewing their insurance arrangements.

AI Liability And Cyber Insurance Can Overlap

The boundaries become particularly important when an AI system is attacked or manipulated.

Imagine an organisation deploys an AI-powered customer service system. An attacker discovers a vulnerability and manipulates the system into revealing confidential information.

There are now several connected risks:

The organisation may have experienced a cyber security incident.

Confidential information may have been exposed.

Customers may suffer consequences from the incident.

The business may face investigation, recovery costs or claims.

This is why AI adoption should be considered as part of the organisation's wider cyber and technology risk management rather than treated as an isolated issue.

AI Liability For Businesses Using Third-Party AI Tools

Not every company building AI is an AI company.

A marketing agency might use an external generative AI platform. An accountant might use AI-assisted software. A software company might integrate a third-party large language model into its application.

This creates another important question:

Who is responsible if the third-party AI system causes a problem?

The answer may depend on contracts, terms of service, the way the system was configured and the actions taken by the business using it.

The NCSC has highlighted the importance of understanding dependencies when organisations adopt AI systems, particularly where third-party models, tools and integrations form part of an AI deployment.

Businesses should therefore review not only their own AI controls but also the technology providers sitting within their supply chain.

Why AI Liability Cannot Be Reduced To One Insurance Policy

AI can influence multiple parts of a business, which means the resulting risks can cross traditional insurance categories.

For example, an AI system could contribute to:

Financial loss: potentially raising professional indemnity or contractual considerations.

Data exposure: potentially creating cyber and data security implications.

Technology failure: potentially creating technology liability or business interruption considerations.

Third-party injury or damage: potentially raising wider liability questions depending on how the technology operates.

The policy that responds will depend on the actual event, the insured activity and the wording of the relevant policy.

For this reason, businesses should avoid assuming that an AI-related incident automatically falls under one particular insurance category.

The Right Question For 2026

Instead of asking:

Do we have AI insurance?

Businesses should ask:

Have we identified how AI changes our existing business risks, and have we discussed those changes with our insurance broker?

That is a more useful question because AI is being adopted across industries in very different ways.

A business using AI for internal administration has a different risk profile from a technology company selling an AI-powered product.

A consultancy using AI to support professional advice has different exposures from an organisation allowing an autonomous AI agent to interact with customers or business systems.

The insurance conversation should reflect those differences.

AI Insurance Needs To Evolve With The Technology

AI technology is developing faster than many traditional business risk frameworks.

The NCSC has warned that the pace of AI development is making established cyber-risk assumptions age quickly, while its guidance on agentic AI recommends organisations consider dependencies, unexpected behaviour, threat modelling and incident response before deploying systems with greater autonomy.

For businesses, this means insurance should not be treated as a one-time decision.

As AI systems become more capable, businesses should revisit how those systems affect their operations and whether their existing insurance remains appropriate.

AI liability insurance is therefore best understood as part of a wider conversation about cyber, technology, professional and commercial risk rather than as a universal standalone solution.

The New AI Risks UK Businesses Need To Understand In 2026

AI adoption is creating a different kind of risk environment for businesses. The issue is not simply whether an AI system can be hacked. Businesses also need to consider what happens when an AI system produces an inaccurate output, processes sensitive information incorrectly, behaves in an unexpected way or relies on another technology provider that experiences an incident.

For UK businesses, these risks are particularly important where AI is connected to customer services, professional advice, software systems, financial processes or sensitive business information.

The following areas deserve particular attention when reviewing AI and technology risks in 2026.

AI-Generated Errors And Inaccurate Outputs

When AI Produces The Wrong Answer

One of the most obvious risks of generative AI is that it can produce information that appears convincing but is inaccurate.

This can create a significant business risk when AI-generated information is used without appropriate human review.

For example, a consultancy could use an AI system to help prepare a client report. If the system produces an incorrect calculation or recommendation and the information is passed to the client without adequate checking, the client could potentially suffer financial loss.

The issue becomes more significant when AI is integrated directly into business processes rather than being used simply as a drafting tool.

Businesses should therefore understand where AI-generated outputs are being used, who is responsible for checking them and what could happen if the system produces an incorrect result.

From an insurance perspective, an AI-generated error could potentially raise professional indemnity, technology liability or contractual considerations, depending on the circumstances and policy wording.

Data Exposure And Confidential Information

What Happens To Business Information Entered Into AI Systems?

AI systems often process large amounts of information, and businesses may use them with customer, employee or commercially sensitive data.

This creates questions around how information is stored, processed and shared.

Consider a company employee entering confidential client information into an external AI platform to generate a report. If that information is subsequently exposed or mishandled, the business could face a potential data security incident.

The risk becomes more complex where AI platforms are provided by third parties because the business may not control the underlying infrastructure.

Businesses should understand what information is being entered into AI systems, what their technology providers do with that information and what contractual protections exist around data handling.

Where sensitive information is involved, cyber insurance may become an important part of the wider risk conversation, although whether a particular incident is covered depends on the policy wording and circumstances.

Prompt Injection And AI Manipulation

When Attackers Try To Influence An AI System

Traditional cyber attacks often focus on compromising systems, accounts or networks. AI introduces additional methods of manipulation.

One example is prompt injection, where malicious instructions are introduced into information being processed by an AI system in an attempt to influence its behaviour.

The NCSC identifies prompt injection as a security concern for systems based on large language models and explains that attackers may attempt to manipulate models into performing unintended actions or revealing information.

For businesses deploying AI applications, this means security testing cannot necessarily stop at the underlying software infrastructure.

The organisation may also need to consider how the AI system interprets instructions, what information it can access and what actions it is permitted to take.

This creates an important overlap between AI risk and cyber insurance UK considerations.

Deepfakes, Impersonation And AI-Enabled Fraud

When Artificial Intelligence Makes Fraud More Convincing

AI can make certain forms of fraud and impersonation more sophisticated.

Voice cloning, synthetic images and realistic video can potentially be used to impersonate executives, customers or business contacts.

Imagine an employee receives what appears to be a voice message from a senior executive asking for an urgent payment. The voice sounds authentic, but it has actually been generated or manipulated using AI.

The resulting financial loss may raise questions around fraud controls, cyber security and the terms of the relevant insurance policy.

Businesses should therefore consider AI-enabled impersonation as part of their wider fraud and cyber risk assessment rather than treating deepfakes as purely a technology issue.

AI Agents And Autonomous Systems

When AI Moves From Generating Information To Taking Action

One of the more significant developments in AI is the emergence of systems that can perform tasks with a greater degree of autonomy.

An AI agent may be capable of interacting with software, accessing information, making recommendations or initiating actions based on instructions.

This changes the risk profile because the system is no longer simply producing an answer for a person to review.

The more autonomy a system has, the more important questions become:

Who authorised the action?

What systems could the AI access?

What controls were in place?

Could the system take an unintended action?

How quickly could an error spread?

The NCSC's guidance on agentic AI highlights the importance of understanding dependencies, monitoring system behaviour, threat modelling deployments and preparing for AI-specific incidents.

For insurance purposes, autonomous AI creates an interesting question around responsibility. If an AI agent takes an action that causes financial loss, businesses may need to understand how their existing technology, cyber, professional and liability arrangements respond.

Third-Party AI Providers And Technology Dependencies

Your Business May Depend On AI You Do Not Control

Many businesses do not develop their own AI systems.

Instead, they rely on third-party providers, APIs, cloud platforms and software companies that integrate AI into their products.

This creates a technology supply-chain risk.

If a critical AI provider experiences an outage, security incident or technical failure, businesses relying on that provider could experience disruption even though their own systems were not directly attacked.

The NCSC recommends organisations understand the dependencies involved in AI deployments, particularly where third-party models and tools form part of an agentic AI system.

Businesses should therefore consider not only their own AI controls but also the resilience and security of the technology suppliers they depend on.

AI And Intellectual Property Risks

When AI-Generated Content Creates A Business Dispute

Businesses are increasingly using AI to create written content, images, software and other material.

This creates questions around ownership, permitted use and potential intellectual property disputes.

The risk will depend on how the AI system was used, what information or material was provided to it and the contractual arrangements surrounding the output.

For businesses using AI commercially, it is important to establish clear internal policies around what employees can create with AI and how AI-generated material should be reviewed before being published or supplied to customers.

From an insurance perspective, the relevant response will depend on the nature of the claim and the specific policy wording.

AI Errors Can Become Business-Wide Risks

One of the most important differences between traditional human error and automated AI systems is scale.

A human employee might make one incorrect decision.

An automated system could potentially repeat the same error across hundreds of transactions or customer interactions before the problem is discovered.

This means businesses need to consider not just the likelihood of an AI error but the potential scale and speed of its consequences.

That is particularly important where AI is connected to:

• Customer-facing systems

• Financial processes

• Professional advice

• Software applications

• Sensitive databases

• Automated decision-making

The more deeply AI is integrated into the business, the more important it becomes to review the associated risk and insurance arrangements.

The Emerging Insurance Challenge

The central challenge for insurers and businesses is that AI-related incidents do not always fit neatly into traditional categories.

One incident could involve technology failure, cyber security, professional negligence, contractual liability and financial loss at the same time.

That does not mean every policy will respond to every part of the incident.

It means businesses need to understand how their insurance programme works as a whole.

AI risk management in 2026 should therefore be treated as a business-wide exercise rather than simply an IT department responsibility.

Can Existing Business Insurance Cover AI Risks?

AI-related risks do not automatically require a completely new insurance policy. In many cases, existing business insurance may respond to certain AI-related incidents, but this depends on the business activity, policy wording, exclusions and circumstances of the claim.

The important step for UK businesses is to review how AI is being used and whether existing cover still reflects that risk.

Professional Indemnity Insurance

If AI is used to support professional advice or services, professional indemnity insurance may become relevant when an error causes financial loss to a client.

For example, an accountant uses AI-assisted software when preparing client information, but an unchecked error contributes to financial loss. The resulting claim could raise professional indemnity considerations.

Cyber Insurance

Cyber insurance may become relevant where AI is connected with data breaches, malicious attacks, system compromise or other cyber incidents.

AI can also introduce additional attack methods, including prompt injection and manipulation of AI-enabled systems. The NCSC identifies these as areas organisations need to consider when deploying AI.

Technology Insurance

Technology businesses developing or supplying AI-powered products may face risks connected with software performance, technology failures and third-party losses.

The appropriate cover depends on what the technology does, how it is supplied and the contractual responsibilities of the business.

Public Liability Insurance

Public liability is generally concerned with third-party injury or property damage. AI may become relevant where an AI-enabled product or business activity contributes to such an incident, although the actual policy response depends on the circumstances and wording.

The key point

Businesses should not assume that an existing policy automatically covers every AI-related loss. Instead, they should review their AI use with their broker and identify where professional, cyber, technology or liability risks may have changed.

At Artemis, technology businesses can discuss their changing risk profile and explore tailored insurance solutions appropriate to their activities. Artemis's Technology offering covers businesses from start-ups to established technology companies. Artemis Insurance Brokers Ltd.

AI And Professional Indemnity Risk

AI is increasingly being used by professional businesses to support research, analysis, drafting and decision-making. This can create new professional risk where an AI-generated error contributes to incorrect advice or a poor client outcome.

For example, a consultant uses an AI system to prepare part of a client report. The output contains an inaccurate recommendation that is not identified before the report is delivered. If the client suffers financial loss and alleges that the professional service was negligent, the situation could raise professional indemnity insurance considerations.

The fact that AI was involved does not automatically determine whether a claim is covered. The nature of the professional service, the circumstances of the error and the policy wording all matter.

Which Professionals Should Review Their AI Risk?

Professional firms using AI should consider how it affects their existing risk profile.

This is particularly relevant for businesses such as:

• Accountants

• Solicitors

• Architects

• Consultants

• Engineers

• IT professionals

The key issue is human oversight. Businesses should understand when AI is being used, what decisions it influences and who remains responsible for checking the output.

For professional firms, reviewing AI use with an insurance broker can help identify whether existing PI insurance UK arrangements remain appropriate as technology becomes more deeply integrated into their services.

Artemis provides professional indemnity insurance for a range of UK professions, including accountants, architects, business consultants and solicitors. Artemis Insurance Brokers Ltd.

AI And Cyber Insurance Risk

AI also creates a growing connection between artificial intelligence and cyber security.

An AI system may process confidential information, connect to business applications or interact with external users. If attackers exploit a vulnerability, manipulate the system or gain access to sensitive information, the incident could create significant cyber consequences.

For example, an attacker manipulates an AI-enabled application and uses it to access confidential business information. The resulting incident could involve investigation, recovery costs, data protection issues and potential claims.

The NCSC identifies AI-specific threats such as prompt injection and recommends organisations consider how AI changes their existing cyber security risks.

Businesses using AI should therefore review whether their cyber insurance UK arrangements reflect their current technology environment, data exposure and third-party AI dependencies.

Who Could Be Liable When AI Causes Loss?

When an AI system causes financial loss, the question of liability may not have a simple answer. Responsibility can potentially involve the business using the AI, the company developing the technology or a third-party provider supplying the underlying model or platform.

For example, a business may use an external AI platform to provide automated recommendations to customers. If those recommendations cause financial loss, the business may need to consider its own responsibilities, the terms agreed with the AI provider and how the system was configured and monitored.

The Business Using AI

A business remains responsible for understanding how AI is being used within its operations. If employees rely on AI outputs without appropriate checks, the business could potentially face consequences when those outputs cause harm.

This is particularly important where AI influences professional advice, customer decisions or sensitive business processes.

The AI Developer Or Technology Provider

Where an AI product or platform fails, questions may also arise around the technology provider's contractual responsibilities.

Businesses using third-party AI should therefore understand supplier agreements, limitations of liability and responsibilities for system failures or security incidents.

Why Contracts And Insurance Matter

AI-related liability can involve several parties, making contracts and insurance arrangements increasingly important.

Businesses should review how responsibility is allocated between themselves and their technology suppliers and discuss significant changes in AI usage with their insurance broker.

The key point is that AI does not automatically determine liability. The circumstances, contractual responsibilities and applicable insurance policy wording will all matter.

What Should UK Businesses Review In 2026?

As AI becomes more embedded in business operations, companies should review whether their existing risk management and insurance arrangements still reflect how the technology is being used.

A useful review should consider what AI systems are being used, what information they access, what decisions they influence and what could happen if they produce an incorrect result or become compromised.

Businesses should also understand their reliance on third-party AI providers and whether contracts clearly allocate responsibilities when something goes wrong.

For technology companies, professional firms and other organisations using AI extensively, discussing these changes with an experienced insurance broker can help identify areas that may require closer attention.

Artemis provides tailored insurance solutions for technology businesses from start-ups to established companies, making a review of changing technology risks a natural part of the insurance conversation.

How Businesses Can Prepare For AI-Related Insurance Risks In 2026

AI risk management should start before an incident occurs. Businesses using artificial intelligence should understand where AI sits within their operations, what information it can access and what could happen if the system produces an incorrect result or is compromised.

A practical review should begin with the technology itself. Identify which AI tools are being used, whether they are developed internally or supplied by third parties, and whether they influence customer-facing or business-critical decisions.

Review Your Existing Insurance

Businesses should review whether their current cyber insurance, professional indemnity and technology insurance reflect their present use of AI.

If AI has been introduced since the policy was arranged, tell your broker about the change rather than assuming the existing policy automatically applies.

Review Third-Party AI Providers

If your business relies on external AI platforms, review the contracts and understand where responsibility sits if the service fails, suffers a security incident or produces an unexpected result.

Third-party dependencies are particularly important as businesses adopt more autonomous AI systems. The NCSC recommends organisations understand these dependencies and consider how they affect security and operational resilience.

Establish Human Oversight

AI should not necessarily be treated as an independent decision-maker. Businesses should establish appropriate review processes, particularly where AI outputs influence professional advice, financial decisions, customer communications or sensitive information.

Keep The Risk Review Up To Date

AI technology is developing quickly, so an annual insurance review may not be enough if your business is rapidly expanding its use of AI.

Significant changes such as introducing an AI agent, connecting AI to customer databases or using AI in a new professional service should trigger a review of the associated risks and insurance arrangements.

The goal is not to insure against AI simply because it is new. The goal is to make sure your insurance reflects the risks AI has introduced into your existing business.

Why Technology Businesses Should Review Their Insurance

For technology companies, AI can become part of the product itself rather than simply an internal business tool. That can create a wider range of potential exposures involving software performance, cyber security, professional services, data and third-party relationships.

A start-up developing an AI-powered application may therefore have very different insurance requirements from an established business using an AI tool internally.

Artemis provides tailored insurance solutions for technology companies ranging from start-ups to established businesses. Artemis Insurance Brokers Ltd

Reviewing insurance as the technology and business model develop can help identify potential gaps before they become a problem.

Get Specialist Technology Insurance Advice From Artemis

AI is changing how businesses operate, but the insurance response should be based on the actual risks rather than the technology label.

Whether your business develops AI products, integrates third-party AI tools or is introducing artificial intelligence into existing services, reviewing your insurance arrangements can help you understand where additional attention may be needed.

Artemis Insurance Brokers helps UK technology businesses assess their insurance requirements and arrange tailored solutions based on their activities and risk profile.

Speak with Artemis today to discuss your technology, cyber and AI-related insurance requirements.

Frequently Asked Questions About AI Liability Insurance UK

What Is AI Liability Insurance?

AI liability insurance is a broad term for insurance protection that may respond to certain risks arising from the development, supply or use of artificial intelligence. It is not necessarily a single standard insurance product. Depending on the circumstances, relevant protection may involve cyber insurance, professional indemnity, technology insurance or other liability covers.

Does Cyber Insurance Cover AI Risks?

Cyber insurance may respond to certain AI-related incidents where the underlying event involves a cyber attack, data breach, system compromise or other insured cyber risk. However, businesses should not assume that every AI-related incident is covered. The actual response depends on the policy wording, exclusions and circumstances of the incident.

Can AI Create Professional Indemnity Claims?

Yes, AI can potentially contribute to professional indemnity risks where it is used to support professional advice or services. For example, an unchecked AI-generated error could contribute to incorrect advice that causes financial loss to a client. Whether a PI policy responds would depend on the circumstances and specific policy wording.

What Insurance Does An AI Company Need?

There is no single insurance package that applies to every AI company. An AI developer may need to consider technology, cyber, professional indemnity and liability risks depending on its products, services, contracts and operations. The appropriate insurance should be based on the company's actual risk profile rather than simply the fact that it uses artificial intelligence.

Should Businesses Review Their Insurance When Adopting AI?

Yes. Introducing AI can change how a business processes data, delivers services, interacts with customers and makes decisions. Businesses should review significant changes in AI usage with their insurance broker rather than assuming existing policies automatically provide appropriate protection.

Final Thoughts

AI Is Changing The Business Risk Landscape

Artificial intelligence is creating new opportunities for UK businesses, but it is also changing how existing risks can arise and how quickly they can develop.

An AI-generated error could affect professional services. A compromised AI system could create a cyber incident. An autonomous AI agent could interact with business systems in an unexpected way. A third-party AI provider could introduce another layer of technology and supply-chain risk.

There is no universal insurance policy that solves all of these exposures.

The more useful approach is to understand how AI has changed your business and then review whether your cyber insurance, professional indemnity, technology insurance and other liability protection remain appropriate.

For businesses adopting AI in 2026, insurance should be part of that conversation from the beginning, not something considered only after an incident occurs.

Speak with Artemis Insurance Brokers to discuss your technology, cyber and AI-related insurance requirements.

Disclaimer: This article is for general information only and does not constitute regulated advice or a personal recommendation. Cover, terms, conditions, exclusions and eligibility vary between insurers and individual policies.

For tailored guidance on your specific circumstances, please speak directly to the team at Artemis Insurance Brokers Ltd, authorised and regulated by the Financial Conduct Authority. Get in touch with the Artemis team on 020 8619 5000.