AI Insurance a Necessity for Legal Tech Companies

As we approached the launching of Lou, LexBlog’s AI powered publishing assistant, I had a running list of things we needed to knock off. Tech, products, sales and support had their on list.

Close to the top of my list was insurance. Did we have coverage for possible claims arising out of the use of AI? Did we need to procure additional insurance?

The answer from our insurer was fairly positive. Our general business liability insurance, with some additional riders, provided:

• Inaccurate information (hallucinations) would be covered if not intentional
• IP infringement claims would be covered so long as not intentional
• Claims of “biased” information would be excluded from coverage

LexBlog also has protection, for now, under Section 230 of the Communications Decency Act which provides protection to online platforms, like LexBlog, when it comes to content published by its users. We’ll not be held liable for the content that our users post.

LexBlog also benefits from some bright lawyers publishing on our platform. The lawyers are not using Lou to write for them, but as an assistant.

As with any blog post, the lawyer is writing the post and reviewing their copy.

Finally, their are LexBlog’s Terms of Service which provide protection for each LexBlog and users.

No additional insurance coverage is going to be needed for now, but it’s an item we’ll keep following.

Starting a company, entrepreneurs have to procure insurance. Whether a claim has merit or not, coverage for the costs of defense is critical.

This is especially true in AI where things are moving fast and there are plenty of unknowns.

In LexBlog’s case, many of our clients employ a thousand two lawyers.

Insurance for AI claims is going to be an interesting topic to cover for tech companies and lawyers. We’re just starting to see litigation in the area.