AI startups move faster with "AI Insurance", first-of-its-kind coverage for new AI risks
SAN FRANCISCO, Jan. 30, 2024 /PRNewswire/ -- Vouch, a leader in business insurance for technology companies, today announces AI Insurance, a novel insurance product that helps AI startups survive lawsuits and innovate faster.
AI Insurance offers coverage for financial losses from AI products or services including top-of-mind risks like large language model (LLM) hallucinations, algorithmic bias, regulatory investigations, and claims of IP infringement in systems that utilize AI algorithms.
As the AI sector navigates class-action lawsuits, regulatory uncertainty, and heightened scrutiny of risks, AI Insurance is an unprecedented safety net for AI startups. It can pay for defense costs and damages, irrespective of fault, with Vouch expertly handling the claim so startups can conserve capital and maintain momentum.
At many AI startups, progress is slowed by tensions between product teams responsible for innovation and governance teams responsible for risk management. AI Insurance can lay the groundwork for a robust AI risk management strategy, helping startups build trust with their stakeholders and move forward confidently.
Sophie McNaught, Director of AI at Vouch, remarked, "When you're a typical SaaS company, missing a quarter of progress to a lawsuit is a setback. For AI companies, it's existential. Vouch's AI Insurance is a critical financial backstop that helps AI startups innovate boldly and survive challenges."
Vouch's AI Insurance includes affirmative coverage for:
- AI Errors & Omissions: Covers error and omission claims caused by AI products or services.
- Bias and Discrimination: Addresses claims related to algorithmic bias or discrimination.
- IP Claims: Safeguards against allegations of IP law violations.
- Regulatory Investigations: Provides defense cost coverage for AI-specific regulations.
John Wallace, Chief Insurance Officer at Vouch, added, "In just half a year, we've seen a surge in AI startups – going from 10% to 70% of the new companies we work with. The launch of AI Insurance shows how quick we are to spot and respond to new risks and potential coverage deficiencies in emerging industries. We knew the AI industry couldn't afford to wait the years it typically takes insurance to catch-up."
Kate Wagner, Head of Operations at Roboflow, a client of Vouch, shared their experience: "Finding an insurance partner like Vouch, who not only understands our business but also keeps pace with the complex legal landscape surrounding AI, has been invaluable. Their expertise gives us the confidence to focus on innovation, with greater assurance that we can handle challenges along the way."
The launch of AI Insurance exemplifies the company's commitment to fueling the startup economy through innovative insurance solutions. Click here to learn more about AI Insurance and Vouch.
About Vouch:
Vouch is a US-based provider of business insurance to thousands of high-growth companies, having raised over $160 million from top-tier Silicon Valley institutions and investors, including Ribbit Capital, Redpoint Ventures, Y Combinator and Index Ventures. Since its inception in 2018, Vouch has empowered clients to get risk management right through niche expertise, a proprietary approach to pricing and underwriting, fast, digital-first procurement and coverages that scale as the company grows.
More information on Vouch can be found at https://www.vouch.us. Vouch Insurance Services, LLC (NPN # 19039391) and Vouch Specialty Insurance Services, LLC (NPN # 19926463) are licensed in the states in which they conduct business.
Detailed license information is available at https://www.vouch.us/licenses.
Media Contact:
Cassidy Clawson
831.247.3750
[email protected]
SOURCE Vouch
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