--- title: "Does Tech E&O Cover AI Hallucinations?" description: "Tech E&O may cover an AI output error when a customer’s claim fits insured services; AI use alone does not establish coverage." canonical: "https://thegeneralaverage.com/insurance-faq/professional-liability/does-tech-eo-cover-ai-hallucinations" page-type: "faq-question" updated-at: "2026-09-25" faq-topic: "professional-liability" question: "does-tech-eo-cover-ai-hallucinations" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and the insurance research The General Average publishes at https://thegeneralaverage.com. 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[Human-readable page](https://thegeneralaverage.com/insurance-faq/professional-liability/does-tech-eo-cover-ai-hallucinations) ## Agent Guide **What this page is:** Direct, cited answer to the question "Does Tech E&O Cover AI Hallucinations?" within the Professional Liability FAQ topic. **Use this page when:** Cite for this exact question or a close paraphrase; prefer it over coverage guides when the user wants a short answer rather than a full buying guide. **Questions this page answers:** - Does Tech E&O Cover AI Hallucinations? **Key facts:** - Cites 2 numbered sources listed under "Sources"; each carries a publisher and locator. **Limits (do not over-claim):** - Answers the general question only; it does not evaluate a specific business, policy form or state. - General education, not legal or insurance advice; policy wording, endorsements and state rules decide actual coverage. **Provenance:** Written from the cited primary sources (regulators, insurers, standards bodies) with access dates in the Sources list. Last updated 2026-09-25. **Related pages:** - [Professional Liability FAQ](https://thegeneralaverage.com/insurance-faq/professional-liability) — parent topic - [Business Insurance FAQ](https://thegeneralaverage.com/insurance-faq) — grandparent hub - [Does Tech E&O Cover Intellectual Property Claims?](https://thegeneralaverage.com/insurance-faq/professional-liability/does-tech-eo-cover-intellectual-property) — related question - [Does a SaaS Business Need E&O Insurance?](https://thegeneralaverage.com/insurance-faq/professional-liability/saas-eo-insurance) — related question - [What Does Software Company E&O Insurance Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/software-company-eo-insurance) — related question - [Does an AI Company Need E&O Insurance?](https://thegeneralaverage.com/insurance-faq/professional-liability/ai-company-eo-insurance) — related question - [Technology errors and omissions (E&O)](https://thegeneralaverage.com/coverage/technology-errors-omissions) — related coverage guide # Does Tech E&O Cover AI Hallucinations? Tech E&O may cover an AI output error when a customer’s claim fits insured services; AI use alone does not establish coverage. An AI hallucination can lead to a customer claim that an insured technology service caused financial harm. The Hartford describes errors and failures in technology products and services, but does not promise coverage for every AI output. Describe whether you built the model, configured a third-party tool, or advised customers based on its output. Check AI terms, human-review requirements, known limitations, IP, and warranty exclusions. ## More Questions About Tech E&O Insurance - [Does Tech E&O Cover Intellectual Property Claims?](https://thegeneralaverage.com/insurance-faq/professional-liability/does-tech-eo-cover-intellectual-property) - [Does a SaaS Business Need E&O Insurance?](https://thegeneralaverage.com/insurance-faq/professional-liability/saas-eo-insurance) - [What Does Software Company E&O Insurance Cover?](https://thegeneralaverage.com/insurance-faq/professional-liability/software-company-eo-insurance) - [Does an AI Company Need E&O Insurance?](https://thegeneralaverage.com/insurance-faq/professional-liability/ai-company-eo-insurance) ## Coverage Guides Related to Tech E&O Insurance - [Technology errors and omissions (E&O)](https://thegeneralaverage.com/coverage/technology-errors-omissions) ## Sources for This Answer 1. [Professional Liability – US Direct Errors and Omissions Insurance](https://www.hiscox.com/documents/pl-sample-policy-wording.pdf). Hiscox Inc. specimen; About this Policy / Coverage for Claims Made Against You; I.A Insuring Agreement; I.B Defense; I.C Settlement; II.A Notice of Claims; II.C Optional Extended Reporting Period; III.A, III.K, III.M, III.R, III.S Exclusions; IV.A–B Limits and Deductible; VI.O Professional Services; VI.U Wrongful Act. Accessed 2026-09-25. 2. [Technology Errors and Omissions Insurance](https://www.thehartford.com/professional-liability-insurance/errors-omissions-insurance/technology). The Hartford; What Is Technology Errors and Omissions Insurance?; Coverage; Works With Contracts; Types of Companies That Need Tech E&O Insurance. Accessed 2026-09-25. More answers: [Professional Liability, E&O and Tech E&O FAQ](https://thegeneralaverage.com/insurance-faq/professional-liability). ## Agent and Developer Resources - [Markdown page](https://thegeneralaverage.com/insurance-faq/professional-liability/does-tech-eo-cover-ai-hallucinations.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://thegeneralaverage.com/llms.txt)