Counterpart, an Agentic Insurance™ platform, has expanded its Affirmative AI Coverage and introduced a Technology E&O Insuring Agreement to address emerging AI-related risks within its Miscellaneous Professional Liability (MPL) and Allied Health product lines.
Businesses are increasingly adopting Artificial Intelligence, with 92% of small businesses now using AI for various operations, including research, marketing, and customer support. However, their existing insurance policies, such as E&O, D&O, Cyber, and CGL, have not consistently evolved to cover these new exposures. Research from Harvard Law’s Forum on Corporate Governance indicates a trend among insurers to include exclusions for AI-related risks and automated decision-making, potentially leaving many businesses without adequate protection.
Ommid C. Farashahi, Insurance Coverage Partner at BatesCarey LLP, commented on the evolving landscape, stating, “AI-related risks are rapidly evolving. Coverage is by no means guaranteed by traditional E&O, D&O, Cyber, and CGL policies, which are ‘silent’ on such exposures and may be mitigated through AI-related exclusions or other policy limitations. To avoid any potential gap in coverage, companies should consider affirmative cover for the concentric circles of AI-related liability.”
The expansion of Counterpart’s Affirmative AI Coverage aims to remove uncertainty by directly addressing errors generated from both first and third-party AI tools. This addresses a range of liabilities, from AI-related discrimination claims and inaccurate AI-generated recommendations to consultant claims stemming from AI hallucinations and disputes faced by insurance agents and financial advisors due to AI-assisted misclassifications.
Mike Muglia, Professional Liability Lead at Counterpart, highlighted the shift in risk, noting, “AI risks have moved from theory to the courtroom. A lot of small business owners and startup leaders are using AI to work faster, process more information, and deliver a higher level of service, but they don’t always see the liability that comes with it. These endorsements give our brokers practical solutions for claims that come from everyday AI use, whether it’s bad outputs, decision errors, or machine-generated bias. As more businesses rely on AI to run and grow, these risks are only becoming more common.”
Counterpart’s platform combines insurance expertise with AI to deliver tailored management and professional liability solutions. It integrates Agentic Underwriting™, Agentic Broker Services™, Agentic Risk Mitigation™, and Agentic Claims Management™ to assist brokers and businesses. The company has placed over 28,000 policies through 2,800 brokers and is backed by five A-rated insurance and reinsurance carriers, including Aspen, Markel, and Westfield Specialty®.
Counterpart has received recognition as an Inc. Magazine Power Partner®, a CB Insights “Top 50 Insurtech,” a PC360 Insurance Luminary, a Great Place to Work, and one of Business Insurance’s “Best Places to Work.”
