AI Failure Insurance

As businesses embrace AI, automation, and robotics, they are entering an exciting but risky frontier where machines help drive critical decisions. While these technologies boost efficiency and innovation, even a small software error like a misguided trading bot or a chatbot giving out wrong advice can cause enormous financial and reputational damage. Traditional insurance policies often leave businesses exposed, as they rarely cover failures unique to machine intelligence, such as algorithmic bias, faulty output, or AI-induced PR crises. This submission spotlights the urgent need for “AI Failure Insurance”, a new breed of coverage that directly protects companies from losses caused by automated systems gone wrong. Real cases, from disastrous trading errors to self-driving mishaps, show that such incidents are not hypothetical. With tailored solutions from leading insurers now emerging, organizations finally have tools to safeguard themselves against the next wave of tech-driven risks, bridging the gap between innovation and accountability in a truly human-centered way.