Thinking About Using AI in Your Production? Here’s What You Need to Know About Insurance

With AI tools becoming more accessible, it’s tempting to use them for writing scripts, generating visuals, or even creating entire scenes. But before you lean too hard on AI, there’s something you really need to understand — especially if you’re planning to insure your project.

E&O Insurance: How It Usually Works

When you’re applying for Errors & Omissions (E&O) insurance — the kind that protects you if someone claims you used their content without permission — the process is pretty straightforward. Your lawyer handles all the clearances, making sure you have the rights to everything in your project. Then the insurer’s lawyer double-checks everything and (assuming it all looks good) recommends offering coverage.

But this process breaks down fast when AI enters the picture.

The Problem with AI-Generated Content

Here’s the issue: most AI tools scrape the internet to “learn” from existing content — articles, images, music, and more — all created by other people. That means what the AI spits out isn’t truly original, and you can’t get the kind of clearances insurers need in order to provide coverage.

To put it bluntly: if your production includes AI-generated content, you may not be able to get E&O insurance for the AI-generated content.

It's Not Copyrightable Either

There’s another catch: AI-generated material isn’t considered copyrightable in most countries. So, you may have no legal ground to stand on — and no protection from the courts.

Talk to a Clearance Lawyer Early

This is a fast-moving legal area, and there’s still a lot of uncertainty. That’s why it’s crucial to bring in a clearance lawyer before you finalize anything AI-related. They can tell you what’s risky, what’s insurable, and what’s best avoided.

How Front Row Can Help

Bottom line: AI can be a powerful creative tool — but if you want to insure your project, use it carefully. When in doubt, talk to your lawyer or reach out to us at Front Row. We’re happy to help.

At Front Row Insurance, we don’t just offer E&O coverage — we guide you through the process.

These are some of the questions we would discuss with you:

• Is the Applicant using any form of generative AI? If so, please provide details on how AI is being used, and how the Applicant is managing risk associated with this use (such as written policies around the use of AI tools, legal consultation on the use of AI tools, human review of all AI-generated material prior to dissemination, etc.)
• What AI tool/system is being used? Has production counsel reviewed terms and conditions to verify commercial usage?
• What was used to feed the AI? Does production have all rights/permissions for these materials?
• How does the Insured verify that any material they disseminate, which is a product of (or has any input or editing by) an AI tool, does not infringe upon the intellectual property rights of others? What steps are they taking to avoid copyright infringement claims?
  
• Does the Insured utilize disclaimers for content which was created by, or had any input/editing by, an AI tool?
• What other risk controls has the Insured established around the use of generative AI? Do all of their contracts have harmless, indemnity, and defence language in their favour?

Have questions? Get in touch with us any time — we'll help you keep your production covered and moving forward.