Does AI Need Its Own Insurance Market? What’s Being Explored and What It Could Mean for Agents
As AI use expands across industries, including agriculture, insurers and brokers are increasingly considering how AI-related risks fit within existing insurance coverages. An article in Insurance Business Magazine has raised the question: do insurance brokers need their own line of coverage for AI technology? An Insurance Business LinkedIn poll found that roughly 50% of respondents expect AI-specific insurance to become a major commercial line, and 22% expect that to happen quickly. A few standalone products are already on the market, including an Armilla AI liability policy for companies developing AI products and Munich Re’s aiSure suite that covers contractual liabilities, financial losses and legal liabilities from AI performance errors.
According to the article, AI-related risks often intersect with existing coverage such as cyber and errors and omissions rather than fitting neatly within one dedicated insurance line. In some cases, existing policies may respond to an AI-related loss even when the policy language doesn’t specifically address AI. The article also notes that some insurers are adding exclusions as they continue to evaluate these emerging risks.
Crop insurance agents should ask whether your agency’s AI use is covered under your current business insurance. Agencies considering AI tools that could access sensitive business or client information, including farm financial or yield data, should also review the tool’s privacy and security practices and discuss potential coverage questions with their business insurance provider.