Why it matters for your company
An agent's mistake is an action already taken. A model that drafts a wrong answer leaves a person to catch it, while an agent that issues the refund or books the shipment creates the loss directly, and the customer's claim traces to your product's decision.
Tech E&O is the line built for that claim, and the question is whether its definitions reach autonomous actions. Trade press reported in July 2026 that the standard-forms bureau was weighing exclusions aimed at agentic AI (The Insurer, 2026-07-10), so the wording on this exposure is still moving.
Related terms
- Technology errors and omissions (tech E&O)Professional liability for technology companies: it responds when your product or service fails to perform and a customer suffers a financial loss. It is the anchor line for an AI or software company.
- Silent AIAI-related risk that a policy neither expressly covers nor expressly excludes, so whether it responds depends on how general wording is read after a loss. The term borrows from silent cyber.
- Affirmative AI coveragePolicy wording or a standalone product that names AI-related losses as covered, instead of leaving them silent or excluding them. It arrives as an endorsement to cyber or E&O, or as a dedicated AI liability policy.
- Generative AI exclusionAn endorsement that removes coverage for claims arising out of generative artificial intelligence. Standard-form versions for general liability, including one for products and completed operations, took effect in January 2026.