AI Resilience

The AI Resilience Hub: Quantifiable Protection for the Frontier of Innovation

The Trust Gap: Why Traditional Insurance Isn't Enough

While 86% of CEOs believe AI will drive revenue growth, over 60% of executives remain hesitant to invest due to uncertain ROI and an unpredictable legal landscape. Traditional Technology E&O and Cyber policies often fail to bridge this "trust gap" because:

Contractual Liabilities Excluded

Contractual liabilities are frequently limited or excluded, leaving you unprotected against specific performance promises made to your customers.

Probabilistic vs. Negligent Failure

AI errors are often the result of the technology's probabilistic nature rather than human negligence, yet most policies require proof of negligence to trigger coverage.

The "Onerous" Burden of Proof

Standard claims processes can be expensive and drawn-out, requiring extensive legal action before a payout is even considered.

Affirmative Coverage

Beyond "Silent AI": Affirmative Coverage for Algorithmic Risk

Traditional liability lines—including D&O, E&O, and Fiduciary Liability—are increasingly adding "Absolute AI Exclusions" that eliminate coverage for any claim "based upon, arising out of, or attributable to" the use or development of AI.

Ocean Falls Insurance provides Affirmative AI Liability products designed to fill these gaps:

aiSure™

1. AI Performance Guarantees

De-risk your customer's purchase decision by turning your performance promise into a financially backed guarantee.

  • Parametric-Like Payouts: Receive certain, quick payments based on proven AI errors (e.g., model drift or accuracy drops below a defined "Ground Truth") without the need for legal action.
  • Monetize Trust: Use our guarantee to differentiate your product in the market and accelerate enterprise adoption.

IP Protection

2. Intellectual Property & Copyright Protection

As courts increasingly rule that unauthorized training data may not qualify as "fair use"—especially when outputs directly compete with original works—the financial risk of IP infringement is substantial.

  • CGL Gaps: Standard Commercial General Liability policies typically only cover copyright infringement within "advertisements".
  • Specific IP Liability: We provide dedicated coverage for legal defense and damages related to AI training data and generated output, regardless of the truth or falsity of the allegations.

Hallucination Mitigation

3. Mitigation of "Model Hallucinations"

AI hallucinations are real technical challenges that can lead to mispriced policies, incorrect underwriting, or legal liability for misinformation. We help you implement and insure against these risks through:

Retrieval-Augmented Generation (RAG)

Ensuring AI outputs are anchored in your authoritative, up-to-date data sources.

Human-in-the-Loop Protocols

Establishing critical oversight for high-stakes decisions.

aiExpress™

Technical Due Diligence: The aiExpress™ Advantage

We don't just underwrite risk; we help you quantify it. Our aiExpress™ Preliminary Assessment uses your model's actual error data from unseen, representative datasets to build a customized premium model.

Regression & Classification Models

Specialized assessment frameworks for your specific AI task.

Continuous Monitoring

Strategies to detect and remediate feature drift and performance degradation before they escalate into losses.

Ready to secure your AI evolution?

Partner with Ocean Falls Insurance to future-proof your business against the unique risks of AI innovation.

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Learn More About AI Liability

Download our comprehensive whitepaper on navigating the AI risk landscape.

Download Whitepaper on AI Liability

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