HSB, part of Munich Re, has launched a new AI liability insurance product designed to protect small and medium-sized businesses from risks associated with artificial intelligence use.
The coverage is intended to address gaps in traditional general liability policies, which may exclude claims linked to AI-driven activities. HSB AI Liability Insurance provides protection against lawsuits involving bodily injury, property damage and personal or advertising injury arising from AI-generated content or automated systems.
The product reflects growing adoption of AI among SMEs, particularly in areas such as marketing, operations and data analysis, alongside rising concern over new legal and financial exposures.
Timothy Zeilman, Global Head of Product Ownership at HSB, said, “All types of businesses are using AI to do things more quickly and efficiently. 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.”
The policy covers a range of scenarios, including:
- Bodily injury liability – for example, incidents caused by AI-controlled systems such as HVAC malfunctions leading to injury
- Property damage liability – such as damage resulting from AI-generated instructions or automation errors
- Personal and advertising injury – including claims related to privacy breaches, defamation or copyright infringement from AI-generated content
HSB said the product will be distributed through partner insurers and added to existing business policies, subject to regulatory approval. The company does not sell the coverage directly to businesses.
The launch highlights increasing demand for specialised insurance solutions as AI adoption accelerates and businesses seek protection against emerging, technology-driven risks.
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