An AI tool can draft a product description in seconds. Someone at the business still needs to check whether that description is true. A wrong specification, an unsupported safety claim, or confidential information entered into the wrong tool can create a problem that outlasts the time saved.
AI liability risks depend on how the tool is used. Start by identifying the work it performs and who checks the result, then review the relevant insurance with your independent agent.
Errors that reach customers
AI-generated answers can sound certain while getting important details wrong. Review prices, product capabilities, delivery promises, and instructions before publication. For advice or professional services, an error could raise professional liability questions that ordinary general liability does not resolve.
Keep a person responsible for approving customer-facing work. Record what was checked when the consequences of an error could be significant.
Customer and business information
Before staff upload a customer list, contract, or internal document, check the tool’s data terms and your own obligations. Establish which tools are approved, what information can be used, and who controls access. Do not assume a paid account makes every use appropriate.
Grand River lists cyber coverage among its Commercial Package options. Ask which incidents and expenses the proposed coverage addresses, including any vendor-related limitations. A cyber label does not mean every loss involving AI is insured.
Copyright and advertising
An output that looks original still needs review. Check rights to images, source materials, logos, and other content used in marketing. Keep licenses and approvals with the finished assets. The U.S. Copyright Office’s permission and fair-use guidance is a useful starting point; attribution alone is not a universal substitute for permission.
Ask your agent about personal and advertising injury coverage and its exclusions. Broader media or professional liability needs may require a separate policy or market.
Decisions about people require closer oversight
Using automated tools in hiring, employee evaluation, or customer eligibility can create legal and employment risks. Have the process reviewed by the appropriate HR or legal adviser. Do not treat a software provider’s assurance as proof that the business’s use complies with every applicable rule.
Questions to take to your insurance review
- Which AI tools do we use, and for what tasks?
- Do they receive personal, confidential, or regulated information?
- Who checks content or decisions before they affect a customer or employee?
- Do our policies contain relevant exclusions, conditions, or reporting requirements?
- Would professional, media, or employment-related exposures need separate coverage?
Grand River provides commercial coverage through independent agents; it does not list a standalone AI insurance product. Find an agent to review your actual use of these tools alongside the rest of your operations.
