Documentation Index
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Third-party coverage protects your organisation when someone outside it — a customer, a regulator, a competitor, or any affected party — makes a claim or brings an action against you because of something your AI agent said or did. Where first-party coverage addresses your own operational losses, third-party coverage funds your legal defence, settlements, fines, and penalties that result from external demands.
Harmful or infringing AI outputs
AI agents can generate content that infringes intellectual property, defames individuals or organisations, violates privacy rights, or causes harm to users who act on incorrect information. This coverage responds to third-party claims arising from any of those outputs.
Example: Your customer service AI references a competitor’s proprietary methodology when generating responses, triggering an IP infringement claim. Separately, a user acts on incorrect medical guidance the agent provided and seeks compensation for the harm caused. Both are third-party claims covered under this area.
Misrepresentation & misselling
When an AI agent overstates your product’s capabilities, makes misleading comparisons, or presents information that causes customers or prospects to form false impressions, the resulting legal exposure lands here. This covers claims from customers who relied on inaccurate AI-generated representations, as well as legal action from competitors harmed by false comparisons.
Example: Your AI marketing bot publishes content claiming 30x engagement improvements that aren’t substantiated by your data. A competitor brings legal action over misleading comparative claims. A customer also files a claim after relying on the inflated figures to justify a purchasing decision. Third-party coverage under misrepresentation responds to both.
Regulatory breach
AI agents operating in regulated sectors — financial services, healthcare, insurance — must meet specific output standards. When a model change or misconfiguration causes outputs to fall outside those standards, regulators may investigate and impose fines or penalties. This coverage pays for your legal defence and any resulting regulatory penalties.
Example: Your financial services platform silently upgrades the underlying model powering a compliance-adjacent agent. The new model’s outputs no longer meet the regulatory standards required in your jurisdiction, triggering a formal regulatory investigation. Third-party regulatory breach coverage funds the legal defence and covers the penalties imposed.
Third-party coverage requires early notification. You must notify Redberry Labs as soon as you become aware of a potential claim or investigation — do not wait for formal proceedings to begin. Delayed notification can affect your ability to claim. Log in to app.redberrylabs.com and open a claim for the relevant agent immediately on becoming aware of an issue. 