Using AI for Insurance? What to Ask, What to Avoid, and When to Call an Agent

For many SMB owners, navigating commercial insurance can feel like one of the least intuitive parts of starting or operating a business. From navigating the language and exclusions to using AI tools for “scenario testing”, business owners simply want to know: Am I missing anything?

In their attempt to research or interpret policies, many entrepreneurs are relying on AI reasoning to translate complexity into clarity. This isn’t a bad idea, but users should proceed with caution and always consult a licensed broker and/or attorney for proper review. 

At Fusco, Orsini & Associates, we are advocates of AI + human oversight + expert review. In this blog post, we’ll guide you through an integrated approach to understanding and interpreting insurance coverage.

Before you start chatting with a large language model (LLM) about insurance, it’s also important to remember that insurance varies by state, industry, contract, and policy. An LLM can be a good place to prepare for a conversation with your insurance broker, but it should not be taken as the final word. We can’t stress this enough!

When to use AI to interpret your business insurance:

These days, we recognize that business owners aren’t just looking up insurance terms, they are asking LLMs about potential real-life situations and risks to make better decisions. AI reasoning can be helpful when you are first exploring insurance options and scenarios.

A good place to start with AI is to obtain an insurance profile for your business.

You might lead with an AI prompt like this:

I run a fully-remote financial consulting company in California. We have 40 employees, generate $10 million in annual revenue, have 5 company cars, 40 computers, 40 cell phones, and operate an online portal for our 2,000 customers. What insurance coverages do I need, what risks each addresses, and which are legally required vs. optional?

This will usually provide you with plenty of information to bring to your insurance broker. If you want to take it a step further, you can follow up with this prompt:

Act like a risk manager. List the top 20 things that could create a claim for my business. For each, say which insurance policy might respond and what exclusions I should ask about.

Then take this to your licensed broker, who should be able to reconcile your findings with the lived reality of your business. 

At our agency, client education is baked into our core values, so we welcome your findings and your questions. We recognize that as business owners become more reliant on AI to interpret insurance and insurance policies, they may raise more questions and concerns.

The next step of an integrated AI approach is: human oversight.

Who in your company is using AI to research insurance, operations, and advisory support?

It's important to know.

Here are a few things to consider:

• Is everyone on the same page about privacy and what you are feeding your LLMs? 
• How are outputs being reviewed, and how are team members sharing feedback with each other?
• How is the CEO using AI vs. operations vs. legal vs. personal assistant, etc?
• Who owns AI usage at your company?
• When someone is making a decision or recommendation based on AI reasoning, are they disclosing this?

These questions go beyond insurance to all areas of your business. Having an AI usage policy is strongly encouraged and helps get your team on the same page. Plus, an AI usage policy is something insurance underwriters are looking for these days!

Now, onto the last step in an integrated AI approach: expert review.

What do I ask AI, and what do I ask my insurance broker?

We’ve explained many ways you can utilize AI to prepare for a conversation with your broker, which is ultimately the most critical step. A licensed broker can review your business profile and AI findings through the lens of lived experience.

At our agency, we’ve worked with more than 20,000 clients IRL. Additionally, we stay up to date on industry trends, news, and best practices. AI models can cite outdated laws, regulations, pricing, policies, procedures, or factual information. In states like California, where the insurance industry is especially volatile, it’s critical to ensure you have the latest information.

That being said, when it comes to insurance, having initial prep conversations with an LLM is a great place to start. 

When it comes to solidifying policy choices, conversations with a licensed broker are critical. 

Your broker will help you:

• Identify insurance gaps specific to your business
• Understand coverage terms, exclusions, and limits specific to your business
• Stay up-to-date with the latest laws, regulations, and procedures
• Help you understand the difference between what coverage is required versus what you actually need
• Provide you with a risk management strategist IRL, not just a digital insurance cheerleader
• Provide a personalized customer experience built on years of lived industry experience

Can I use AI to review my insurance policy or compare policies from different vendors?

Once you’ve met with a broker, you may be inclined to use an LLM to interpret your policy and/or compare policies. In this case, we would encourage you to meet with a trusted broker to review your policies with you. 

If you do decide to ask an LLM to translate or interpret your policy, there are a few things to keep in mind.

What are the dos and don’ts when using AI to interpret my insurance policy?

DON’T: Do not share private identifying information in your conversation. If you’re uploading a policy for review, you’ll want to remove such information.

DON’T: Do not accept an initial policy review as the end-all, be-all. While an LLM can review a policy, you should not rely on it to determine if your policy is air-tight. A real broker should review your policy with you to determine if gaps exist.

DON’T: Do not let an LLM leave you feeling overly optimistic. The platforms can be extremely affirming, but they don’t actually know your business or its nuances.

DO: Do ask an LLM to “explain this policy in plain English”, if you are still having trouble understanding the language.

And again, bring your questions, concerns, or findings back to your broker and/or legal team for a clear, authoritative explanation.

OK, that is all for now! We truly hope you find this AI guide to insurance helpful. Feel free to reach out with any questions.

Source:

OpenAI. (2026, May 8). Response to “What are the best ways to use llms to get started with navigating insurance?” and “What are the most common things business owners type into google or LLM to see if they have the right insurance coverage?” ChatGPT.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

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