Artificial Intelligence Civil Liability Insurance Quebec

ARTIFICIAL INTELLIGENCE

Artificial intelligence business liability insurance

Model development, LLM, ML, generative AI, sectoral AI solutions: a new field, specific risks. Protect yourself with E&O adapted to AI risks : hallucinations, bias, training data, automated decisions.

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Starting at $3,000

Annual premium

$2M to $10M

E&O Limits

Bill 25 & AI

Compliant

AMF

Certified brokers

Companies that develop or integrate artificial intelligence in Quebec face an emerging category of risks: hallucinations of models generating false information, discriminatory biases in automated decisions, copyright violations via training data, privacy-related incidents (Bill 25 + future Canadian AI framework), damage caused by decisions made by a model without human supervision. Traditional E&O fonts are often unsuitable and explicitly exclude AI. A specialized AI policy explicitly mentions: LLMs, predictive ML, vision, generative AI, and covers third-party lawsuits related to model outputs.

AI Team Development — Assur360 AI Business Liability

IN BRIEF

Professional liability for artificial intelligence companies

Companies developing AI, machine learning or generative model solutions are faced with new risks: algorithmic bias, hallucinations, intellectual property infringement, and erroneous automated decisions.

A special feature is that few traditional insurers accept AI risks. An independent broker like Assur360 has access to specialized markets (Lloyd’s, Beazley, Coalition) that specifically cover risks related to artificial intelligence.

The 6 essential protections for an AI company

E&O model and AI outputs

Hallucinations, misinformation, contested automated decisions, discriminatory biases.

Intellectual property

Data and Law 25

Processing of personal information, anonymization, compliance with Bill 25 and future AI executives.

Cyber and Infrastructure

Targeted attacks on models (adversarial), model exfiltration, API compromise.

RC AI products

Damage caused by an embedded AI product (robotics, autonomous vehicle, medical diagnosis).

D&O Leaders

Personal lawsuits following contested AI ethics or governance decisions.

💡 Broker’s advice

Generic E&O policies increasingly include “AI” or “machine learning” exclusions. A consultant who has switched from classic dev to AI solutions without updating his policy may find himself without coverage. Require a font that explicitly mentions your AI use cases (LLM, classification, prediction, content generation, detection). Without it, your coverage is illusory the day a customer disputes a model exit.

Frequently Asked Questions

How much does an E&O for an AI company cost in Quebec?

Between $3,000 and $15,000 per year for an SME with 3 to 25 employees. Companies that deploy AI in healthcare, finance, or HR pay more (risks of contested automated decisions). AI startups often start at $2,500/year for a $1M limit.

A hallucination of our LLM causes a financial loss to a client — covered?

Yes, if your font explicitly includes the outputs of AI models. Generic fonts often exclude “auto-generated content.” Require a specific “AI outputs and hallucinations” clause. Usual limit $2 million to $5 million.

Our model unintentionally discriminates against protected groups — exposure?

Yes — algorithmic biases are generating increasing lawsuits (employment, credit, insurance, health). Your E&O can cover the damage if you had documented testing and auditing procedures. The lack of bias audits is an aggravating factor.

The training data in our model includes protected content — covered?

AI specialized intellectual property liability covers unintentional infringements. Policies increasingly require a documented data sourcing policy (licenses, opt-outs, consents). Unlicensed scraped data is a growing risk.

Does Bill 25 apply to automated decisions?

Yes — Bill 25 imposes an obligation of transparency on decisions made by automated systems with legal effect. The customer must be able to request a human review. Your policy must explicitly include Bill 25 and anticipate the federal Artificial Intelligence and Data Act (AIDA).

Our medical diagnostic model is wrong — responsible?

Yes, partially. Healthy RNs are classified as medical devices by Health Canada. Your E&O must be explicitly specialized in health, with a minimum limit of $5 million. Mandatory human supervision greatly reduces your exposure.

A competitor is stealing our model via a public API — covered?

Model stealing, adversarial distillation can be covered by a specialized AI cyber specialist. Recommended measures: rate limiting, watermarking of exits, detection of abuse. Document these measures — they reduce premiums and increase recourse.

Our chatbots generate advice that users follow — responsible?

Potentially. Consumer chatbots must clearly display their limitations (“does not replace a professional”). Without a clear disclaimer, your exposure increases. Your E&O policy should include “end-user interactions,” not just B2B interactions.

Investors and advisors demand AI insurance — mandatory?

More and more. Investors (VC, CPQ, IQ) and boards of directors are demanding E&O AI from Series A. Common levels: $2 million start-up, $5 million growth, $10 million enterprise-wide. Factor the cost into your financial projections.

AI companies across Quebec

Assur360 supports businesses throughout Quebec: Montreal, Quebec City, Laval, Gatineau, Longueuil, Sherbrooke, Trois-Rivières and Saguenay. Montreal’s AI ecosystem (Mila, IVADO, Plateau/Mile-Ex startups), AI firms in Quebec City, university spin-offs in Sherbrooke, regional AI consultants: our brokers know the specific challenges of this fast-growing ecosystem.

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