Counterpart expands AI coverage to address emerging small business liabilities

Counterpart’s new Affirmative AI Coverage aims to fill gaps in traditional professional liability policies, responding to the rapid surge in AI adoption among small businesses and the increasing legal risks linked to AI-driven errors and decision-making.

Counterpart, an Agentic Insurance™ platform, has announced an expansion of its Affirmative Artificial Intelligence (AI) coverage across all Professional Liability products, aiming to address the rising risks associated with AI in small businesses. This development comes as companies increasingly integrate AI tools into their daily operations but find that traditional professional liability policies often fail to cover AI-related liabilities.

AI adoption among small businesses has been accelerating rapidly. Industry data shows that adoption rates have surged significantly in recent years, with multiple sources reporting a wide range of figures from 55% to nearly 70% of small businesses now using AI for various purposes. For example, a national survey by Thryv highlights a 41% increase in AI adoption among small businesses in 2025 compared to the previous year, noting that 80% of users deem AI essential for customer acquisition and meeting rising consumer expectations. Similarly, reports from the U.S. Chamber of Commerce suggest that nearly 60% of small businesses have incorporated AI into their operations, more than doubling since 2023. Geographic and firm size variations exist, with adoption rates in some states like Connecticut and Maine reaching upwards of 70%, while even smaller firms see increasing AI uptake. Globally, about 77% of small businesses have adopted AI in at least one area, indicating a worldwide trend toward digital transformation.

Despite the enthusiasm and growing reliance on AI, traditional insurance products such as Errors & Omissions (E&O), Directors & Officers (D&O), Cyber, and Commercial General Liability (CGL) policies often do not explicitly cover liabilities emerging from AI tools. These policies may even exclude AI-related risks or remain silent on automated decision-making exposures, potentially leaving companies vulnerable. According to Ommid C. Farashahi, Insurance Coverage Partner at BatesCarey LLP, the rapidly evolving nature of AI-related risks means that “coverage is by no means guaranteed” under standard policies, emphasizing the need for affirmative AI coverage that explicitly addresses these liability areas.

Counterpart’s move introduces Affirmative AI Coverage and a Technology E&O Insuring Agreement designed to fill this coverage gap. The expanded offering targets risks related to errors and omissions generated from the use of first-party and third-party AI tools. This includes AI-driven errors such as inaccurate recommendations, biased decision-making, and discriminatory outcomes. The stakes are particularly high across several professional sectors: consultants have faced claims linked to AI ‘hallucinations’ in reports; insurance agents and financial advisors encounter disputes when AI-assisted risk assessments misclassify risks; and human resources departments grapple with allegations of AI-driven hiring discrimination. Such incidents underline the increasing legal and financial exposure businesses face from AI usage.

This insurance initiative is timely, given the growing body of research highlighting the legal challenges posed by AI. Harvard Law’s Forum on Corporate Governance has observed insurers’ tendencies to impose exclusions on AI-related risks, leaving many businesses inadequately protected. In a broader context, surveys of small business leaders, such as one conducted by the National Small Business Association (NSBA), show a strong appetite for AI tools that can automate and grow business functions, yet also reveal concerns about managing the associated risks effectively.

The evolving insurance response mirrors the broader technological shift in the small business sector, where AI is now a core operational element rather than a peripheral tool. Most small business owners, according to a Goldman Sachs report, view AI as an enhancement to their workforce rather than a replacement. They rely on AI for data analysis, content generation, customer support, and decision-making automation. However, this increased reliance necessitates equally sophisticated insurance solutions that recognise and cover AI-specific liabilities rather than ignoring or excluding them.

In summary, as AI adoption continues to permeate small business operations, the insurance industry is beginning to catch up with products tailored to these technological realities. Counterpart’s expanded coverage offering represents a significant step toward closing the protection gap around AI-related risks, providing clearer, affirmative coverage that aligns with the modern risks businesses face. This development may well set a precedent prompting other insurers to follow suit in addressing the complex liabilities emerging from AI-driven business practices.

📌 Reference Map:

• ^[1] (Yahoo Finance – Business Wire) – Paragraph 1, 4, 5, 6, 7, 8
• ^[2] (Business Wire – Thryv survey) – Paragraph 2
• ^[3] (U.S. Chamber of Commerce report) – Paragraph 2, Paragraph 3
• ^[4] (AISoftware Systems) – Paragraph 2
• ^[5] (Forbes – Goldman Sachs report) – Paragraph 2, Paragraph 8
• ^[6] (U.S. Chamber of Commerce technology impact report) – Paragraph 2
• ^[7] (NSBA survey) – Paragraph 8

Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative appears to be original, with no prior publications found. The earliest known publication date is November 24, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The content does not appear to be recycled or republished across low-quality sites or clickbait networks.

Quotes check

Score:
10

Notes:
No direct quotes were identified in the provided text. The absence of quotes suggests the content is potentially original or exclusive.

Source reliability

Score:
9

Notes:
The narrative originates from a reputable organisation, Business Wire, which is known for distributing press releases from credible companies. This association strengthens the reliability of the information presented.

Plausability check

Score:
8

Notes:
The claims regarding AI adoption among small businesses and the introduction of Affirmative AI Coverage by Counterpart are plausible and align with current industry trends. The narrative includes specific data points and references to reputable sources, such as the Thryv survey and the U.S. Chamber of Commerce report, enhancing its credibility. The language and tone are consistent with professional business communications.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is original, based on a recent press release from a reputable organisation, and presents plausible claims supported by specific data points and references to credible sources. The absence of direct quotes and the professional tone further support its authenticity.