Air Canada put the answer on the business. That business now sends it to you.Founded by a software developer who runs an AI app.
We insure companies that build customer service chatbots and AI agents for other businesses, with technology E&O and cyber, and we read the customer’s indemnity before the policy. A bot that answers wrongly draws the deployer’s claim and then yours, and one that issues refunds or cancels orders is taking actions that a general software policy was not written for.
Tell us the situation.
One licensed human replies the same business day — not five agents, not an auto-responder. If the policy you have is already the right one, we will tell you.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
The person placing your tech E&O runs an app with an AI coach of his own.
Kevin Kelsey
Founder | Principal Agent
Boring’s founder, Kevin Kelsey, owns and runs TrainRec, a fitness app with a built-in AI coach, and has placed insurance for AI apps. Insuring his own taught him how an underwriter reads a model. Personal guidance from an AI reads more like the work of a professional than like software, technology E&O forms commonly exclude bodily injury, and not every form will add it back. So whether your app answers money, health, hiring or farming questions, the gap between what it says and what the policy covers gets read by someone who has had to close it for his own product.
Send us what you have. We’ll tell you if it’s right.
Your current policy paperwork, a renewal notice, or nothing at all. A licensed agent reads it and replies the same business day.
What AI chatbot or agent vendor businesses actually need.
Technology E&O with contractual liability
Claims that your bot gave wrong output or took a wrong action, including the customer’s claim against you under an indemnity in your contract.
Without it — Many forms exclude liability assumed only by contract, so the indemnity your customer required may be a promise no policy backs. Ask how the form treats it.
Cyber & tech E&O
Breach response, ransomware and the notification costs that follow. Technology errors and omissions sits on the same policy and covers the software or service itself failing a client, which is the half most tech companies find out about too late.
Without it — Your transcripts hold customers’ personal details. A breach, and a privacy claim over how the chat was recorded or used, are cyber and privacy claims.
AI liability, endorsed or standalone
Coverage written for the way AI output and AI agents fail, including actions an agent takes on a customer’s behalf.
Without it — A policy that excludes generative AI, or reads an agent’s action as outside your technology services, removes the claim you are most likely to get.
General liability
Third-party bodily injury and property damage. It is the line nearly every contract names by default.
Without it — The certificate your customers ask for first. It rarely answers a bot’s wrong output and may carry a technology or professional services exclusion.
Media liability
Covers claims arising from what you publish (defamation, copyright and trademark infringement, invasion of privacy and misuse of a person’s likeness) on an annual policy for creators, podcasters, publishers and authors.
Without it — If a bot publishes or generates text that defames someone or copies protected content, the claim is media, not software.
What the regulators actually wrote down.
In Moffatt v. Air Canada, 2024 BCCRT 149 (decided February 14, 2024), a British Columbia tribunal held the airline responsible for wrong bereavement fare information its website chatbot gave a customer, found that Air Canada “did not take reasonable care to ensure its chatbot was accurate,” and rejected the argument that the chatbot was a separate entity, saying it “is still just a part of Air Canada’s website.”
Civil Resolution Tribunal of British Columbia, Moffatt v. Air Canada, 2024 BCCRT 149, as quoted by McCarthy Tétrault (decision text on CanLII) · checked 2026-11-01
California makes it unlawful to use a bot to communicate or interact online with a person in California, with intent to mislead them about its artificial identity in order to incentivize a purchase or sale of goods or services, and a person using a bot is not liable if it discloses that it is a bot; the disclosure must be clear, conspicuous and reasonably designed to inform people they are dealing with a bot.
California Business and Professions Code sections 17940 and 17941 · checked 2026-11-01
California’s bot disclosure chapter defines a bot as an automated online account where all or substantially all of the actions or posts are not the result of a person, and says the chapter imposes no duty on service providers of online platforms such as web hosting and internet service providers.
California Business and Professions Code sections 17940(a) and 17942(c) · checked 2026-11-01
In Jones v. Peloton Interactive, Inc., No. 23-cv-1082 (S.D. Cal.), a California Invasion of Privacy Act claim over the Drift chat tool on Peloton’s website was dismissed with leave to amend on March 12, 2024, because the court found the allegation that the chat vendor used the data for its own purposes conclusory and treated the vendor as an extension of Peloton.
Jones v. Peloton Interactive, Inc., Order Granting Defendant’s Motion to Dismiss, No. 23-cv-1082-L-BGS (S.D. Cal. March 12, 2024) · checked 2026-11-01
An AI agent that gives one customer personal guidance, as opposed to publishing fixed content, tends to be read by an underwriter as closer to a professional service than to software, and a businessowners technology extension may not reach advice-type output.
Kevin Kelsey, agency placement experience on AI apps (insurers not named) · checked 2026-10-29
The claims we actually see.
Ordered by how often we see them, not by how dramatic they are. Each one names the coverage that answers it — and the policy people wrongly assume already does.
Most common
A customer of your client acts on a wrong answer and the client demands you pay
Covered by Technology E&O with contractual liability
The deployer is liable to its customer, as Moffatt v. Air Canada held, and recovers from you through the indemnity. If the policy excludes assumed liability, you pay from your own funds.
Common
An agent issues a refund, cancels an order or books something it should not have
Covered by Technology E&O, financial loss
An action is not a statement. A policy written for advice or content may be read narrowly, and a pure financial loss caused by your agent acting on its own is worth stating in the application.
Common
A class action alleges chat transcripts were recorded or shared without consent
Covered by Cyber privacy liability, with wiretap-type claims read for exclusions
Wiretap and recording claims are statutory, and some privacy forms exclude them or limit them. Read the exclusion for violation of communications laws, including the California Invasion of Privacy Act.
Less common, severe
A bot is accused of deceiving a customer about being a machine
Covered by Technology E&O and cyber regulatory, wording dependent
California requires a bot used to push a sale to disclose that it is a bot. The cost of answering an inquiry is only covered if the form includes regulatory defense for this kind of statute.
What our AI chatbot or agent vendor clients ask us.
We build the bot. Who is liable when it is wrong?
Both of you, in sequence. In Moffatt v. Air Canada the tribunal held the airline responsible for what its website chatbot said and rejected the idea that the chatbot was a separate entity. The business running the bot now pays its customer, then looks to the vendor through the contract. The question for your insurance is whether your policy backs the indemnity you signed.
Is my business liable for what our AI chatbot says? (the deployer side)
What will the underwriter ask a chatbot or AI agent vendor?
What the bot decides versus what it suggests, and which actions it can take without a person approving: refunds, cancellations, bookings, account changes. Which model you call and whether you control its prompts and guardrails, how outputs are tested, logged and escalated to a human, and what your terms say about accuracy. Add your customer count, conversations a month, revenue, the industries and states you serve, your indemnity and liability cap clauses, whether chats are recorded and who sees them, and any claim you have had.
What did Moffatt v. Air Canada actually decide?
On February 14, 2024 a British Columbia tribunal found Air Canada liable for negligent misrepresentation because its chatbot told a customer he could claim a bereavement fare after travel, contrary to the airline’s policy. It said Air Canada had not taken reasonable care to ensure its chatbot was accurate, and that a chatbot is part of the website. The amount was small. The principle is why customers now ask their vendors for indemnity.
Our customer contract says we indemnify them for what the bot says. Is that insured?
Only if the policy covers liability you assumed by contract, which many technology E&O forms limit. Read the indemnity first: is it capped, does it cover the customer’s own negligence, does it include regulatory fines. Then check the policy exclusions against it. Send us the clause before you sign.
Our agent can issue refunds and book orders. Is that different from a chatbot that talks?
Yes. A statement is a representation a customer relies on, and an action is a transaction your system performed. If the agent refunds the wrong order or cancels a service, the loss is direct. Underwriters ask what the agent can do alone, what limits and approvals it has, and whether every action is logged. Describe those controls in the application.
Can recording or analyzing chat transcripts lead to a lawsuit?
Yes, under wiretap-style laws such as the California Invasion of Privacy Act. In Jones v. Peloton in federal court in San Diego, a claim over the Drift chat tool on Peloton’s website was dismissed with leave to amend in March 2024, because the court found the allegation that the chat vendor used the data for its own purposes conclusory. The line courts draw is whether the vendor only serves the business or uses the conversations for itself, such as training its own models. Say which you do.
Does California require our bot to say it is a bot?
California Business and Professions Code section 17941 makes it unlawful to use a bot to interact with a person in California with intent to mislead them about its artificial identity in order to incentivize a purchase or sale, and a clear, conspicuous disclosure that it is a bot avoids liability. The chapter defines a bot narrowly, as an account where all or substantially all actions are not the result of a person. A disclosure line costs nothing and answers the question.
Does the generative AI exclusion matter to a chatbot vendor?
Very much. If a general liability or media form your customer carries excludes generative AI, the customer has no coverage for the claim and looks harder at you. Ask whether your own form excludes it, and whether any AI wording is an endorsement you can negotiate.
Does a disclaimer on the chat window protect us?
It helps the defense and does not stop a claim. A clear statement that answers may be inaccurate and that written policies control is better than none. It does not replace the coverage, and it does not change what you owe a customer under your contract.
Which NAICS codes does this page cover?
The 2022 NAICS codes a chatbot or AI agent vendor may fall under are 513210 Software Publishers, 541511 Custom Computer Programming Services, 541512 Computer Systems Design Services, 518210 Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services, and 561422 Telemarketing Bureaus and Other Contact Centers if you also run the conversations for clients.
We built the agent quickly with AI coding tools. Does that matter?
An underwriter will ask who reviewed the code that lets an agent act on customer accounts. State what was generated and what a person checked and tested.
We sell to customers outside the US. Does our insurance follow?
Not automatically. Many policies defend only US and Canadian claims, and privacy and consumer laws abroad can reach your bot. Check where claims can be brought.
Can a bot give advice that leads to injury?
If it advises on health, safety or similar, a claim that someone was hurt acting on it is bodily injury, which technology E&O forms commonly exclude. Contingent bodily injury is the grant for an injury someone says came from relying on your output. Our fitness page explains the pattern.
Where do the other AI app industries fit?
The hub lists them all, one page per industry.
Is there a worked example from an AI product we know?
Yes, and it is our founder’s own. Kevin Kelsey owns a fitness app with a built-in AI coach, and in placing it an underwriter read the coach as closer to a professional than to software. Your agent will be read the same way if it gives personal guidance.
What do you need to quote a chatbot or agent vendor?
What the bot does, which actions it can take, your model provider, your customer count and conversation volume, revenue, the industries and states you serve, and whether you record or reuse chats. Send your customer agreement with the indemnity and cap, and your current policies.
Guides on AI chatbot or agent vendor.
- Insurance for an App Launching WorldwideAn app store launch puts your app in front of users in dozens of countries on the first day. Your tech E&O may only defend claims filed in the US or Canada, and your cyber policy has to handle European privacy rules, where health and fitness readings are a special category of data.
- Vibe-Coded App InsuranceA vibe-coded app carries the same liability as any other, and the documented failures are security ones: open databases, exposed keys and an agent that deleted data. Here is which policy answers which failure, what the AI tool providers say about who is responsible, and what to check before you buy.
Commercial insurance is 96% of what we do — it is not a department here, it is the whole business. Not ready to talk? The guides answer the questions this page raises in more depth. Already insured with us and need a certificate or a policy change? Ask the service team rather than starting a quote — it is faster and it goes to the people whose job it is. We also write home and auto, which is usually cheaper alongside the business policy than apart from it.
Handed a lease, a vendor packet or a client contract with insurance requirements? Paste it into the COI Requirements Decoder to see what each one means for your business, or read what the requirements mean.