Leading Insurtech, Counterpart, Addresses Critical Coverage Gap With Affirmative AI Coverage

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LOS ANGELES--(BUSINESS WIRE)--Nov 24, 2025--

Businesses are adopting Artificial Intelligence (AI) faster than ever, but their insurance has not kept pace. From AI-related discrimination claims to inaccurate AI-generated recommendations, a growing number of companies are discovering that their professional liability policies exclude coverage for the new tools they have come to rely on. Counterpart, the leading Agentic Insurance™ platform, today announced the expansion of its Affirmative AI Coverage and the addition of a Technology E&O Insuring Agreement to address these emerging risks across its Miscellaneous Professional Liability (MPL) and Allied Health products.

AI adoption among small businesses has surged, with 92% now using AI in some form, primarily for research, marketing, and customer support. Automated decision-making tools have quickly become part of daily operations, improving efficiency but also amplifying risk. Research from Harvard Law’s Forum on Corporate Governance found insurers are increasingly writing exclusions for AI-related risks and automated decision-making, leaving many businesses exposed.

“AI-related risks are rapidly evolving. Coverage is by no means guaranteed by traditional E&O, D&O, Cyber, and CGL policies, which are ‘silent’ on such exposures and may be mitigated through AI-related exclusions or other policy limitations. To avoid any potential gap in coverage, companies should consider affirmative cover for the concentric circles of AI-related liability,” said Ommid C. Farashahi, Insurance Coverage Partner at BatesCarey LLP.

For many insurers, AI is still a gray area. Coverage is often silent, leaving business owners unsure about how their policies actually respond to these growing exposures. Counterpart’s Affirmative AI Coverage removes that uncertainty by directly addressing errors generated from first and third-party AI tools.

The stakes have never been higher for professionals using AI to deliver their services. Consultants faced claims after delivering reports with AI hallucinations. Insurance agents and financial advisors are facing disputes when AI-assisted risk assessments misclassify exposures and projections, leading to client losses. In human resources, companies face allegations of hiring discrimination, with recent lawsuits targeting hiring platforms that use biased AI decision-making.

“AI risks have moved from theory to the courtroom,” said Mike Muglia, Professional Liability Lead at Counterpart. “A lot of small business owners and startup leaders are using AI to work faster, process more information, and deliver a higher level of service, but they don’t always see the liability that comes with it. These endorsements give our brokers practical solutions for claims that come from everyday AI use, whether it’s bad outputs, decision errors, or machine-generated bias. As more businesses rely on AI to run and grow, these risks are only becoming more common.”

Counterpart continues to work closely with brokers to understand insureds’ concerns around emerging risks and build modern coverage solutions that evolve alongside the businesses it serves. With more than 28,000 policies placed through 2,800 brokers and an appetite that continues to grow across new professions and emerging risks, Counterpart is proving that professional liability can be both more comprehensive and more accessible.

Read more about Counterpart’s Liability Coverage at yourcounterpart.com.

About Counterpart

Counterpart is the first Agentic Insurance™ platform, combining trusted insurance expertise with cutting-edge AI to deliver tailored management and professional liability solutions. By integrating Agentic Underwriting™, Agentic Broker Services™, Agentic Risk Mitigation™, and Agentic Claims Management™ into one powerful platform, Counterpart empowers brokers and the businesses they serve to do more with less risk®. Backed by five A rated insurance and reinsurance carriers, including Aspen, Markel, and Westfield Specialty®, Counterpart has earned recognition as an Inc. Magazine Power Partner®, a CB Insights "Top 50 Insurtech," a PC360 Insurance Luminary, a Great Place to Work, and one of Business Insurance's "Best Places to Work." To learn more, visit yourcounterpart.com.

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KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES TECHNOLOGY LEGAL INSURANCE HUMAN RESOURCES ARTIFICIAL INTELLIGENCE

SOURCE: Counterpart

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PUB: 11/24/2025 09:00 AM/DISC: 11/24/2025 09:01 AM

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