AI Insurance to Face the Unpredictable
Secure your AI venture’s future against emerging perils: from data breaches to algorithmic mishaps, ensure you’re covered.
Why You Need Tech E&O Insurance
Insurance Policies Tailored for AI Companies
Errors & Omissions (E&O)
Errors & Omissions (E&O)
This policy protects your AI company from financial losses if your AI products or services cause unintended harm to clients. For example, if an AI-powered medical diagnosis tool provides an inaccurate recommendation, E&O insurance can cover associated legal costs.
Tech E&O (Errors & Omissions)
Tech E&O (Errors & Omissions)
This specialized insurance focuses on professional services related to AI development. If your company designs or implements custom AI solutions for clients, Tech E&O protects you from claims of negligence or errors in those services.
Cyber Liability
Cyber Liability
Cyberattacks are a constant threat, and AI companies often handle sensitive data. Cyber liability insurance safeguards your business financially in case of data breaches. It covers costs like data recovery, forensic investigations, and regulatory fines, minimizing disruption and reputational damage.
Product Liability
Product Liability
This policy covers financial losses if your AI product malfunctions and causes harm. Imagine an AI-powered robot accidentally injuring someone – product liability insurance would help cover associated legal and compensation costs.
Intellectual Property (IP)
Intellectual Property (IP)
Innovation is vital in AI. IP insurance protects your ownership of unique AI models and algorithms. If someone steals your intellectual property, this insurance can provide financial backing for legal battles, ensuring you reap the rewards of your inventions.
Directors & Officers (D&O)
Directors & Officers (D&O)
This policy safeguards the personal assets of your company’s directors and officers from lawsuits alleging mismanagement related to AI development or deployment decisions. This fosters a sense of security for your leadership team, allowing them to make bold, innovative choices that drive your AI company forward.
Type of AI Companies That Need Insurance
Technology Startups
Companies innovating in fields like machine learning, natural language processing, and robotics. These startups often develop new AI applications and technologies.
Automotive Industry
Companies involved in the development of autonomous vehicles or AI-based safety features. The use of AI in vehicles introduces complex liability and safety concerns.
Healthcare Companies
Firms using AI for drug discovery, patient diagnostics, personalized medicine, and healthcare management. AI in healthcare can involve significant liability risks.
Financial Services
Businesses employing AI for algorithmic trading, risk assessment, fraud detection, and customer service automation. AI in finance involves significant data and privacy risks.
Retail and E-Commerce
Companies using AI for customer behavior analysis, personalized recommendations, inventory management, and automated customer service.
Manufacturing Companies
Firms leveraging AI for predictive maintenance, supply chain optimization, and automation of manufacturing processes.
Telecommunications
Companies employing AI for network optimization, predictive maintenance, customer service automation, and data traffic analysis.
Media and Entertainment
Businesses using AI for content recommendation, personalization, and consumer behavior analysis.
Security Firms
Companies utilizing AI for threat detection, cybersecurity, and surveillance. AI in security often involves critical data protection and privacy issues
Educational Institutions and EdTech Companies
Using AI for personalized learning, student performance analysis, and educational content development.
How Much Does AI Insurance Cost?
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| Regulatory Landscape and Compliance |
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Partnering with Founder Shield
We’re a risk management partner for high-growth companies across emerging markets, striving to create the most seamless, intuitive, and responsive insurance-purchasing experience powered by proprietary technology and insurance products.
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10,000+
Venture Backed Companies$33BN
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NPS Score (Industry Avg = 34)How to Get Started
Submit an application and have our 1-1 advisor evaluate your startup’s unique vulnerabilities and potential liabilities.
Select tailored insurance policies that address your startup’s specific needs.
Connect with a trusted insurance provider and secure your startup’s future.
Testimonials
“I was referred to Founder Shield by a friend who works with technology-based startups as I do… Founder Shield was simple – go to the website, fill out the form, get a quote quickly, pay and Voila – you are insured. I need a highly rated insurer and they delivered… I highly recommend Founder Shield.”
“The Founder Shield team is a wonderful and supportive partner… Not only are they 100% devoted to insuring compliance, they provide continuous guidance. Our dedicated account manager is extraordinary – goes above and beyond to ensure all of our needs are met.”
“ Excellent and very reliable customer service. Founder Shield not only worked with us and helped us gain competitive insurance coverage in a field that is very new, they also went above and beyond in communicating directly with authorities to help us ease through the process of gaining permission to operate. ”
Case Studies
Self-Driving Car Accident (Lidar Company)
Self-Driving Car Accident (Lidar Company)
A self-driving car equipped with lidar technology from Company X malfunctions and causes a serious accident. The victims’ families sue Company X, alleging faulty lidar sensors contributed to the crash. This case highlights the potential product liability risks for companies developing components for autonomous vehicles.
AI Bias in Loan Applications (FinTech Startup)
AI Bias in Loan Applications (FinTech Startup)
A FinTech startup uses AI algorithms to assess loan eligibility. However, the algorithm is found to exhibit racial bias, unfairly disadvantaging loan applications from minority groups. Borrowers who were denied loans sue the startup for discriminatory practices. This case emphasizes the importance of fair and unbiased AI development in financial services.
Medical Misdiagnosis by AI Tool (Healthcare Provider)
Medical Misdiagnosis by AI Tool (Healthcare Provider)
A hospital utilizes an AI tool to assist doctors in medical diagnoses. However, the AI tool makes a critical error, leading to a delayed and incorrect diagnosis for a patient. The patient sues the hospital for negligence, claiming the AI tool was not properly vetted or used. This case highlights the need for careful evaluation and responsible implementation of AI tools in healthcare settings.
Facial Recognition Mistaken Identity (Security Software Company)
Facial Recognition Mistaken Identity (Security Software Company)
A security software company develops facial recognition software for law enforcement use. The software misidentifies an individual, leading to a wrongful arrest. The individual sues the company for emotional distress and reputational damage caused by the faulty identification system. This case emphasizes the potential dangers of inaccurate facial recognition technology and the importance of robust testing before deployment.
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