Cowbell has announced Cowbell AI Liability Insurance, a standalone policy for US businesses deploying AI agents that act on their behalf. The policy will be available from 1 January 2027 exclusively through wholesale brokers on a non-admitted basis.
The product is built around a specific "AI Incident" coverage trigger that combines first-party loss cover with liability cover for resulting claims. According to the release, an AI Incident can include an AI tool exceeding its authorised scope, acting without required approval, exposing data without authorisation, producing inaccurate or unsafe outputs, or failing to operate within established controls. It can also include adversarial manipulation, unstable behaviour, model drift, or algorithmic discrimination.
First-party cover may include AI Incident Response, Output Correction, Direct Transaction Loss, Runaway Cost for unauthorised AI usage charges, and LLMjacking for usage charges arising from stolen credentials or API keys. Third-party cover may include defence costs and covered damages or settlements for claims alleging algorithmic discrimination, copyright or trademark infringement, bodily injury, or property damage. It may also extend to regulatory proceedings and, where permitted by law, certain fines and penalties.
Underwriting uses three AI-specific Cowbell Factors that assess AI observability, autonomy, and governance, alongside other underwriting information. Businesses can access their AI-specific Cowbell Factors by activating Cowbell Connectors for AI tools such as Gemini, Claude, and ChatGPT.
"We designed Cowbell AI Liability Insurance to help businesses manage those risks as they put AI to work," said Trent Cooksley, Co-founder and Chief Operating Officer of Cowbell.
"When an agent goes rogue, a business can face its own losses and claims from customers and others at the same time. We designed Cowbell AI Liability Insurance for that agentic reality, giving brokers a concrete solution for their clients," said Simon Hughes, Chief Commercial Officer of Cowbell.
Cowbell, based in Pleasanton, California, offers cyber, AI liability, technology errors and omissions, professional, and management liability insurance in the United States, Australia, and the United Kingdom.
