Rely on AI? There’s now insurance for that

Policy to cover costly errors

Rely on AI? There’s now insurance for that

Professional Risks

By Terry Gangcuangco

Legaltech firm Orbital Witness has introduced an insurance-backed accuracy guarantee called “AI Reliance” in partnership with First Title Insurance.

Based in London, Orbital Witness develops legal due diligence and client reporting software powered by artificial intelligence (AI). Its technology is currently used by more than 4,000 professionals for over 60,000 property transactions annually, leveraging generative AI for routine and time-consuming tasks.

Under the tie-up, First Title will underwrite Orbital Witness’s generative AI product output, covering errors that result in compensation claims.

Initially, AI Reliance policies will be available to law firm customers of Orbital Witness’s Orbital Residential, without requiring them to claim on their professional indemnity (PI) insurance. First Title will offer significant insurance coverage, matching the PI insurance levels mandated for law firms.

Ed Boulle, co-founder and chief strategy officer of Orbital Witness, stated: “Law is a highly regulated sector. Law firms are ultimately responsible for the services they provide to their clients.

“When adopting any new technology, firms must be able to satisfy the regulator (and their own insurers) that new technology is safe to use and won’t create additional risks to their clients. Generative AI is no different from other technologies in this respect.”

Meanwhile First Title chief executive Kevin Dick remarked: “AI is increasingly being applied to speed up and reduce the cost of real estate transactions. Law firms and conveyancing businesses need greater confidence that the AI technology they adopt is safe to use, can be relied upon, and is compliant.

“First Title’s innovative insurance policy is the first of its kind and stands to be transformational in the professional services industries, creating a benchmark for other AI providers to aspire to.”

Orbital Witness is authorised by the Financial Conduct Authority to distribute insurance on behalf of First Title.

“We might be the first AI provider to integrate insurance into our product, but we won’t be the last,” Boulle added. “Before long, insurance will – and indeed, should – form part of the framework within which businesses will be expected to use AI in a way that is guaranteed, financially accountable, and compliant.”

What do you think about this story? Share your thoughts in the comments below.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!