
UnHacked - Cybersecurity Made Simple for Small Businesses
Insurance Won't Cover Your AI Mistakes Anymore | UnHacked Ep. 99
Hosts: Justin Shelley - https://www.phoenixitadvisors.com/ Mario Zaki - https://www.mazteck.com/ Insurance companies are quietly excluding AI-related claims from cyber policies. If you're using AI in your business right now, you need to know this before renewal. For the last 24 episodes, Justin Shelley and Mario Zaki have shown business owners how to use AI to save time and money. This week they hit pause on the excitement and looked at what's happening on the insurance side, because it's changing fast, and most business owners have no idea. Insurance carriers are now excluding claims involving AI resume-screening tools that discriminate against candidates, even when the business owner never intended it to happen. They're also excluding "negligence" claims: if you vibe-coded your own system, put your business data into it, and something breaks or disappears with no hack involved, some policies are treating that as your fault, not a covered incident. Justin admits on the show that his own first vibe-coded project had zero real security in it and could have leaked data before he caught it. They also break down the newest breach numbers most business owners haven't seen: the global average cost of a data breach is up 12% to $4.99 million, AI-enabled breaches jumped 56% year over year and now average $6 million, 43% of security incidents involved unapproved "shadow AI" tools, 70% of breached organizations had no AI governance policy at all, and 92% of organizations breached through AI systems lacked basic access controls. This episode is short and direct on purpose: audit what you've built, then call your insurance agent this week. What you'll learn: Why AI resume-screening tools can trigger discrimination claims your business liability insurance may no longer cover How "self-inflicted" data loss from vibe-coded systems is being excluded as negligence, even with no hacker involved The current breach numbers: AI-enabled breaches now average $6M, and 92% of AI-related breaches happened in systems with no basic access controls The exact three questions to ask your insurance agent about AI exclusions before your next renewal Why a tested backup and restore plan matters even more once AI or vibe-coded systems are running part of your business New episodes drop every week breaking down cybersecurity and AI risk in plain English. Subscribe so the next "audit your business before it's too late" episode doesn't catch you off guard. Need help figuring out where your business actually stands on AI and cybersecurity risk? Phoenix IT Advisors helps small and mid-sized businesses find these gaps before an insurance company or a hacker finds them for you. Visit PhoenixITAdvisors.com to schedule a consult. Links: Full episode: https://unhackmybusiness.com/episode/99 Free AI policy template & insurance question checklist: https://unhackmybusiness.com/episode/99 Phoenix IT Advisors: https://phoenixitadvisors.com More UnHacked episodes: @UnHackedPodcast

