Counterpart, the Los Angeles-based Agentic Insurance™ platform, has announced an expansion of its Affirmative Artificial Intelligence (AI) Coverage and the launch of a new Technology Errors and Omissions (E&O) Insuring Agreement.
The move strengthens protection across its Miscellaneous Professional Liability (MPL) and Allied Health products, supporting small businesses as they navigate emerging AI-related risks.
The expansion comes as businesses increasingly adopt AI tools in everyday operations, from marketing and customer service to research.
However, most existing insurance policies have not evolved at the same pace, leaving gaps in coverage for risks such as AI-generated misinformation, discriminatory outcomes, or faulty automated decision-making.
Counterpart’s initiative seeks to close these coverage gaps and help companies stay protected against one of the most significant emerging risks in today’s professional landscape.
Founded to modernise professional liability insurance, Counterpart focuses on helping small businesses access better coverage through data-driven underwriting and automation. By partnering closely with brokers, the company has built a reputation for developing solutions that evolve in tandem with client needs and technological shifts.
The new Affirmative AI Coverage is designed to provide explicit protection for claims arising from the use of both first and third-party AI tools. It directly addresses errors such as inaccurate AI-generated reports, biased machine learning outputs, and misclassified data in professional settings. Counterpart’s offering aims to remove ambiguity around how insurance policies respond to AI-driven incidents.
This initiative comes amid growing evidence that insurers are increasingly excluding AI-related risks. Research from Harvard Law’s Forum on Corporate Governance found that automated decision-making is often not covered, leaving businesses vulnerable. Counterpart’s proactive stance is intended to restore clarity and confidence for brokers and insured clients alike.
“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,” BatesCarey LLP insurance coverage partner Ommid C. Farashahi said.
“AI risks have moved from theory to the courtroom,” Counterpart professional liability lead Mike Muglia said. “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.”
With more than 28,000 policies placed through 2,800 brokers, Counterpart continues to expand its reach across new professions and emerging risks, proving that professional liability insurance can be both comprehensive and accessible.
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