AI Startups Move Faster With “AI Insurance”, First-Of-Its-Kind Coverage for New AI Risks

By PRNewswire On Jan 31, 2024

Vouch, a leader in business insurance for technology companies, announces AI Insurance, a novel insurance product that helps AI startups survive lawsuits and innovate faster.

AI Insurance offers coverage for financial losses from AI products or services including top-of-mind risks like large language model (LLM) hallucinations, algorithmic bias, regulatory investigations, and claims of IP infringement in systems that utilize AI algorithms.

As the AI sector navigates class-action lawsuits, regulatory uncertainty, and heightened scrutiny of risks, AI Insurance is an unprecedented safety net for AI startups. It can pay for defense costs and damages, irrespective of fault, with Vouch expertly handling the claim so startups can conserve capital and maintain momentum.

At many AI startups, progress is slowed by tensions between product teams responsible for innovation and governance teams responsible for risk management. AI Insurance can lay the groundwork for a robust AI risk management strategy, helping startups build trust with their stakeholders and move forward confidently.

Sophie McNaught, Director of AI at Vouch, remarked, “When you’re a typical SaaS company, missing a quarter of progress to a lawsuit is a setback. For AI companies, it’s existential. Vouch’s AI Insurance is a critical financial backstop that helps AI startups innovate boldly and survive challenges.”

95 Percent of Retail Leaders Prioritize AI, but Only 40 Percent Feel Ready Due to Data Gaps

Nov 21, 2024

Baffle Announces Vector Database Protection to Enhance Data Security for GenAI Applications

Nov 21, 2024

H2O.ai Generative and Predictive AI Now Validated on the Dell AI Factory with NVIDIA

Nov 21, 2024

Prev Next 1 of 40,601

Vouch’s AI Insurance includes affirmative coverage for:

AI Errors & Omissions: Covers error and omission claims caused by AI products or services.
Bias and Discrimination: Addresses claims related to algorithmic bias or discrimination.
IP Claims: Safeguards against allegations of IP law violations.
Regulatory Investigations: Provides defense cost coverage for AI-specific regulations.

John Wallace, Chief Insurance Officer at Vouch, added, “In just half a year, we’ve seen a surge in AI startups – going from 10% to 70% of the new companies we work with. The launch of AI Insurance shows how quick we are to spot and respond to new risks and potential coverage deficiencies in emerging industries. We knew the AI industry couldn’t afford to wait the years it typically takes insurance to catch-up.”

Kate Wagner, Head of Operations at Roboflow, a client of Vouch, shared their experience: “Finding an insurance partner like Vouch, who not only understands our business but also keeps pace with the complex legal landscape surrounding AI, has been invaluable. Their expertise gives us the confidence to focus on innovation, with greater assurance that we can handle challenges along the way.”

[To share your insights with us as part of editorial or sponsored content, please write to sghosh@martechseries.com]