Risk classification · training data · oversight
Professional indemnity insurance (BAV) for an AI consultancy
An AI consultancy tells clients what they may and can do with a model. If that advice is wrong, a system in which months have been invested has to come out of production.
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Deze pagina in het Nederlands: Beroepsaansprakelijkheidsverzekering voor een AI-adviesbureau.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
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- An adviser checks whether the cover suits your activities
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A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
An AI consultancy carries out feasibility studies, selects models and suppliers, sets up governance and guides implementation. The loss caused by a mistake is financial: an implementation that has to be redone, a system taken out of use, a tender withdrawn, staff who have worked for months on something that may not be deployed. That pure financial loss is the domain of professional indemnity insurance, the structure of which is set out on the hub page on the BAV states.
The distinctive risk lies in the rules you advise on. The European AI Act classifies applications by risk and attaches obligations to that on documentation, human oversight, data quality and transparency. If you advise that an application falls into a light category while the regulator takes a different view, the advice itself is the cause of the loss. The GDPR (AVG) also applies in full: automated decision-making with legal consequences engages Article 22 of the GDPR, and for high-risk processing a data protection impact assessment is compulsory under Article 35 of the GDPR.
Finally, make sure the cover joins up with other policies. If your client is hit by a data breach in the environment you set up, investigation, restoration and notifications go to a cyber insurance. If you carry out processing for your client yourself, you are a processor and you need a processing agreement under Article 28 of the GDPR. For neighbouring data-driven work there is professional indemnity insurance for data analytics firms the relevant page.
This page deals with one situation. The full overview is on Compare professional indemnity insurance (BAV).
What to look out for
Four subjects that determine, in AI consultancy, whether a claim falls within the cover.
Classification advice is your heaviest product
The judgement on whether an application counts as high risk determines whether the client must set up a complete system of documentation, logging and human oversight. If you get it wrong, the loss is the whole set-up. Record which facts, version of the rules and reference date your judgement rests on, and that the client remains ultimately responsible as provider or deployer.
Model performance is not a promise
An accuracy figure from a test set-up says nothing about production with different data. Describe the evaluation method, the dataset used and the known limitations. If you promise a saving, an error margin or a lead time, your best-efforts undertaking becomes an obligation to achieve a result, and liability under guarantees is excluded on the policy.
Training data and intellectual property
If you advise on datasets, fine-tuning or the use of a model of unclear origin, your client may be held liable for infringement of copyright or database rights. Virtually every BAV contains an exclusion for infringement of intellectual property rights. Ask whether that risk can be included and check the licence terms of every model you recommend.
Fines and sanctions stay with the client
If a regulator imposes a fine or penalty payment, that is a sanction and not compensation; liability policies exclude it, even if the client tries to pass the amount on. Also excluded is redoing your own advisory work and loss caused by intent or wilful recklessness, for which Article 7:952 of the Dutch Civil Code is the basis.
What does your premium depend on?
- Annual turnover: split across advice, implementation and support
- Sectors your clients work in: healthcare, financial services and government weigh more heavily
- Advice only or building as well: supplying software is a different risk
- Processing of personal data: determines your role under the GDPR
- Your engagement terms: a sound limitation of liability counts
- Sum insured and excess: per claim and per insurance year
Insurers weigh these details differently. That is where your saving is.
What is covered
| Situation | AVB | BAV |
|---|---|---|
| A model you recommended performs far below the test results in production and the client falls back on the old way of working | No | Yes |
| A chatbot you set up makes a promise to your client's customers that he has to honour | No | Yes |
| Your client loses a tender because a compulsory annex was missing from your report | No | Yes |
| One of your consultants knocks over a server cabinet at the client | Yes | No |
| During a migration you supervised, the client's production data is irretrievably lost | No | Provided that |
| An employee of your firm falls down a staircase at the client's premises | Provided that | No |
Everything you cause with your advice is on the right. What you cause by your presence is on the left.
Frequently asked questions
This is what people ask us most.
Our client received a fine after our compliance advice. Does the insurer pay?
Not the fine itself. Administrative sanctions are excluded on liability policies, regardless of who caused them. What can fall within the cover is the other loss your client suffers because he has to adapt or stop the system. Whether that is so depends on whether your advice fell below the standard of a reasonably competent and reasonably acting professional.
A supplier's model performed worse than stated. Who is liable?
The question is whether you selected the supplier carefully and assessed his statements critically. An adviser is expected to test suppliers' claims and to identify the limitations. Record for each project which alternatives you compared and which data you relied on. Also make sure your client's contract with the supplier contains no obligations that come back to you.
A model turned out to disadvantage certain groups systematically. What now?
Report it to your insurer as a circumstance and put the file together: the data selection, the tests for unequal outcomes and the advice you gave. Your client's loss consists of remediation, reassessment of decisions and possible compensation to the individuals concerned. Claims by individual data subjects run through the GDPR and through tort under Article 6:162 of the Dutch Civil Code.
Do we need cyber insurance alongside the BAV?
If you have access to clients' systems or data, yes. A BAV does not pay the costs of your own incident: forensic investigation, restoration, informing data subjects and the interruption of your own services. Those items belong on a cyber policy, which often also includes liability after a data breach. The two policies join up and do not replace each other.
Read more
Within Beroepsaansprakelijkheidsverzekering
- Beroepsaansprakelijkheidsverzekeringthe main page
- Beroepsaansprakelijkheidsverzekering cybersecurity bedrijf
- Beroepsaansprakelijkheidsverzekering data analist zzp
- Beroepsaansprakelijkheidsverzekering ai consultant zzp
- Beroepsaansprakelijkheidsverzekering compliance adviesbureau
- Beroepsaansprakelijkheidsverzekering veiligheidsadviesbureau
- Beroepsaansprakelijkheidsverzekering duurzaamheidsadvies
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