What Armilla AI Does
Armilla AI provides insurance and warranty products designed specifically for the ways AI systems fail. Its offerings include affirmative liability coverage for AI model errors, output liability, agent mistakes, data leakage, property damage, and regulatory violations, plus an AI Performance Warranty that compensates customers when AI underperforms. Armilla also runs independent verification and assessment services for AI systems and operates an AI Risk Hub with access to an AI litigation database. Unlike coverage retrofitted from cyber or E&O policies, Armilla's products are built to address AI-specific failure modes with clear, affirmative protection.
Funding & Background
Armilla AI was founded in 2020 in Toronto by Karthik Ramakrishnan (CEO) and Rahm Hafiz, and is a Y Combinator alum. In January 2026 it raised a $25M round to expand its AI liability coverage amid surging demand for protection against generative-AI risks. Armilla is a Coverholder at Lloyd's and underwrites through Lloyd's syndicates, working with insurers and reinsurers including Chaucer, AXIS Capital, Convex, Swiss Re, and Greenlight Re, with prior investors spanning Mistral Venture Partners, MS&AD Ventures, Greycroft, and others.