Insurers are now excluding AI from your own liability coverage
Archive story from the 2026-07-20 edition. This is the reporting as filed; source publication and event dates may differ. Check the dated storyline for subsequent developments.
ISO issued three generative-AI exclusions for general liability, and major carriers have won approval for explicit AI exclusions.
The market is ending "silent AI" coverage. ISO issued three generative-AI exclusions for commercial general liability in Jan 2026 (CG 40 47, CG 40 48, CG 35 08); Chubb, Travelers, and Berkshire got explicit AI exclusions approved on GL/D&O/E&O (regulators approved 80%+ of requests), and Berkley filed an absolute AI exclusion. Coverage is fragmenting across GL, cyber, Tech E&O, and D&O.
Why it matters
This is the flip side of every "adopt AI scoping" pitch. If your estimate or scope is AI-generated and a bad output causes a loss or a dispute, your own GL/E&O may now carve out that exact scenario. The tool the vendor gave you could be uninsurable.
Our assessment
Every vendor pitch says AI makes your estimating faster. Nobody mentions that your own liability policy may now carve out losses caused by it, and some filings go as far as an absolute exclusion. That is the whole trade in one picture: vendors take the upside, you carry the uninsured downside. Ask your broker for the AI language on your next renewal before you sign.
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Carrier / Legal High confidence at publication
How we got here
Storyline: AI in claims 7 stories so far
What changed from carriers using AI to deny claims, to carriers excluding AI from the contractor's own liability policies.
- When AI guesses wrong on the scope, the floor pays
- Carriers are pointing AI at your roof
- Texas regulators just put AI claims-handling on the table
- Sedgwick: 2026 CAT season will be harder to model
- Will your next claim be denied by a computer? Regulators are finally asking
- The hidden cost of AI (the operator's side of the ledger)
- Insurers are now excluding AI from your own liability coverage You are here