AI & E&O Exposure — Managing Innovation with Caution

The Rundown

Catalyit’s Chief Strategy Officer Angela Ford urges insurance agencies to embrace AI’s benefits—but with a sharp focus on risk management, especially around E&O exposure.

The Context

• Ford highlighted the benefits of AI, such as boosting speed and accuracy in daily workflows.
• However, she also highlighted major risks, including liability from inaccurate outputs, data security concerns, and unclear ownership of information.
• She cautioned against free AI tools (like ChatGPT’s free version), recommending paid versions for stronger safeguards.
• Her advice to agencies: vet vendors carefully, read the fine print on contracts and privacy terms, and set clear internal guidelines.

Why it Matters

As AI adoption accelerates, so do the risks, particularly in fields such as insurance, where precision and compliance are non-negotiable. Agencies that chase every new tech trend without due diligence could end up exposing themselves to costly legal or reputational fallout.

Catalyit's Message: Proceed, but proceed smartly.