HSB Announces AI Liability Insurance for Small to Midsized Businesses

• By: Will Jones
• July 13, 2026

PRODUCT: HSB Artificial Intelligence Liability.

COMPANIES: HSB.

BEST RATING: A++

AVAILABILITY: Appointed agents and brokers only.

FOCUS: Specialty insurer HSB recently introduced a new artificial intelligence (AI) liability insurance coverage that protects businesses from lawsuits resulting from the use of AI technologies.

HSB survey data shows 74% of small and midsize businesses already use AI and 91% plan to, driving new liability risks that standard general liability policies may not fully cover. The new coverage addresses these gaps.

“All types of businesses are using AI to do things more quickly and efficiently,” said Timothy Zeilman, global head of product ownership for HSB, part of Munich Re Group. “At the same time, the AI transformation brings new legal and financial exposures. Business owners may wonder, am I protected? AI insurance helps remove that uncertainty by filling the gaps in coverage, so businesses can stay ahead of emerging risks.”

COVERAGE DETAILS: AI Liability is a market-leading product that covers defense, settlement and judgment costs for third-party claims alleging bodily injury, property damage, or personal and advertising injury arising from the business’ AI usage.

Examples of covered artificial intelligence liability incidents include alleged physical injury, illness, mental anguish, copyright infringement, libel, slander or invasion of privacy. AI Liability claims are handled 100% in-house.

UNDERWRITING: Companies partnering with HSB to offer coverage retain full underwriting authority for limits up to $100,000.

TARGET: AI Liability is designed for small to midsized businesses that use AI across functions, such as marketing, social media and sales. As carriers increasingly adopt AI-related general liability exclusions, this coverage offers a clear, affirmative option.

COVERAGE AVAILABILITY: All U.S. states.

Will Jones is IA editor-in-chief.