What should an AI business do when a customer alleges harm?

Short answer

Use the incident and applicable insurer reporting processes, preserve facts and involve appropriate advisers. A marketplace submission is not claim notice, and the allegation should not be dismissed solely because the model performed as designed.

An illustrative example

A customer says an automated decision caused a loss.

This is a hypothetical situation, not a real customer outcome or a coverage determination.

Three facts to prepare

• Allegation date
• Relevant version
• Reporting contacts

Use a brief, accurate summary. Separate confirmed facts from assumptions; keep passwords, identity numbers, private customer records and confidential documents out of an initial marketplace request.

A question to bring to the right professional

What notice and evidence steps are required under current terms?

Use your incident process and applicable insurer or professional contacts for time-sensitive matters. Record confirmed facts, allegations and unknowns separately. Do not use a LunarQuote profile as claim notice, make a promised coverage determination or publish sensitive evidence while seeking help.

Sources and scope

• NAIC: cybersecurity and insurance

  General commercial cyber context; the NAIC describes cyber policies as customized. This source does not decide coverage for an AI scenario.

• Travelers: technology errors and omissions risk examples

  Insurer-authored context on technology service allegations and differences in policy wording. Product descriptions apply to that source; they are not LunarQuote offers or evidence of a partnership.

Sources supply the stated background, not a determination about the illustrative case. The example, checklist and discussion prompt are LunarQuote educational material. Source links checked October 5, 2026.