The Digital Press

AI insurance to cover errors and omissions faces significant challenges despite high demand due to the unpredictable risks of AI mistakes and market complexities.

Why it matters: AI adoption is held back by fears of costly errors, making insurance a potential risk transfer tool.

The big picture: Tech Errors & Omissions insurance is a niche, small market under $5B despite software’s critical role, limiting AI insurance growth.

The stakes: Insurers struggle with information asymmetry, risk concentration, and fast AI evolution, complicating pricing and coverage stability.

Commenters say: Readers highlight parallels with existing software risks and stress that widespread insurance depends on better AI risk assessment and market trust.