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AI Business Insurance: How to Protect Your Business from AI Risks

Protect your business from AI risks with the right business insurance. Learn how cyber insurance and liability coverage help address AI threats and fraud.

July 17, 2026
Insurance Guides, Reliable Guides, Reliable Resources

Artificial Intelligence, or AI, has affected industries across all sectors. While the technology has created many opportunities, it has also exposed businesses to many more risks. Are the protections you usually relied on still keeping your business safe? Can insurance keep up with AI-driven threats?

The Risks of AI for Businesses

What kinds of risks do you and your business face in this new age of AI? While the list below is not exhaustive and is most likely changing even as we write, these are some of the more pressing ones any modern business might face in a world where artificial intelligence tools are the norm.

  • Fraud. As a tool capable of doing a high level of mimicry, AI has been used in many types of fraud. False claims, identity theft, and misrepresentation are some of the most common forms of AI-assisted fraud today.
  • Intellectual Property Theft. AI can also be used for different levels of plagiarism and other forms of intellectual property theft. Your products can be quickly reverse-engineered, and the work produced by your creative team can be replicated through the use of AI tools.
  • Hits to Reputation. Two of the biggest consulting companies, KPMG and Deloitte, wrote expensive reports that contained AI “hallucinations,” data, and other information that was made up and full of errors. Instances like this can hurt your reputation if you rely too much on AI for similar output.
  • Obsolescence. Legitimate AI use cases can leave your business behind competitors who know how to use the technology, or at least make it appear that way to potential investors.
  • Cybersecurity Issues. AI has also been used extensively to assist cybercriminals, from increasing their brute-force capabilities with AI’s computational and analytical speeds to something as simple as mimicking the voice of the CEO to open the company’s system to malicious actors.

How Insurance Helps Protect Businesses from AI Risks

So what protection can insurance policies provide against AI-related risks?

  • Commercial General Liability covers third-party claims for injuries, property damage, and even defamation and copyright infringement within advertising products. Depending on your coverage, CGL could help you deal with damage caused by your AI tools.
  • Professional Liability covers errors and omissions that occur while providing professional services. This is the type of coverage you would likely rely on if your business does something similar to what KPMG and Deloitte did, releasing a product that contains errors because it relied on inaccurate AI-generated information.
  • Cybersecurity Insurance becomes even more relevant today, as AI tools make digital systems more vulnerable. Most cybersecurity insurance policies cover data breaches, privacy liability, network security incidents, and extortion.

Note that the insurance industry, which is also facing many challenges due to technology, is still assessing how to properly address AI and its threats to policyholders. At the same time, insurance providers are extra careful in approving claims caused by AI, whether through its use by your business or by outside actors using AI tools against you. All industries and professions are still new to AI, so everyone, including insurance providers, is still learning how to navigate this new landscape.

If you wish to know more about how insurance policies can help protect you and your business given the challenges of AI tools and actors, Reliable Insurance Brokers are ready to help you. We’ll guide you through the process of selecting the best plans for your needs and explain how they can be tailored to ensure your business is protected from AI risks.

Contact Information for Inquiries and Support

If you have any questions or need assistance with your insurance, feel free to reach out to us:

  • Call: +63 2 8631 9285 to 86
  • Mobile: +63 917 138 5120
  • Email: info@reliable-insurance.ph
  • Messenger: m.me/reliable.insurancebrokersph

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