AI liability insurance: when insurers exclude AI, your audit trail is your evidence.
Since January 2026, standard US liability forms include optional exclusions for generative AI, and the EU now treats AI as a product. Why the decision record becomes the evidence.
AI errors are getting harder to insure. Since January 2026, standard US liability forms include optional exclusions for generative AI, and from December 2026 the EU treats software and AI as products under strict liability. When cover narrows, the record of how an AI reached its decision is what you have left. PRISM produces that record by design.
Insurers stepped back.
In January 2026, Verisk's ISO introduced optional generative-AI exclusions for general liability policies, and several large carriers filed AI exclusions of their own. Cover for AI mistakes is narrowing, and specialist policies ask harder questions about how the system works.
AI is now a product.
The EU's new Product Liability Directive applies from 9 December 2026. Software, including AI, counts as a product. Courts can order a company to disclose evidence about how its system worked, and a failure to do so can count against it.
What did it decide, and why?
Whether the question comes from an insurer, a court or a regulator, it is the same one. A system that only logs inputs and outputs cannot answer it. A system that records how it checked its own answer can.
Evidence as a by-product.
PRISM's self-correction produces a plain-language record of each decision: what was considered, what contradicted, what was corrected. It does not make anything insurable on its own. It gives you the evidence the conversation requires.
Short answers
Straight answers to what investors and partners ask us first.
Increasingly not by default. Since January 2026, US standard forms include optional generative-AI exclusions that carriers can add, and several have filed their own.
Yes. Under Directive (EU) 2024/2853, applying from 9 December 2026, software and AI are products.
It does not remove risk, but it lets you show what the system decided and why, which is what insurers, courts and regulators ask for.
See it working.
We show the PRISM proof of concept live, and share the technical brief and data room with qualified investors and partners.
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