2026-07-31 · Source: Business Insurance
Summary in 3 Points • Commercial insurers add exclusions for generative AI risks following Verisk Analytics' endorsement templates • Verisk Analytics' templates aim to reduce uninsured exposure by excluding bodily injury and property damage from AI claims • Insurers seek to prevent surprises in claims by standardising exclusions for generative AI-related losses --- Commercial insurers are increasingly incorporating exclusions for **generative AI** risks in their policies, a move prompted by Verisk Analytics Inc.'s release of standardised endorsement templates. These templates specifically exclude coverage for certain losses associated with the use of **artificial intelligence**, such as bodily injury, property damage, and personal or advertising injury. The initiative aims to mitigate uninsured exposure and prevent unexpected outcomes when claims involving **AI** are filed, as reported by Insurance News. For the **London Insurance Market**, the introduction of these exclusions is particularly relevant to **technology liability** and **cyber insurance** lines, where many Lloyd's syndicates are actively engaged. As Verisk Analytics' templates gain traction, London Market insurers may need to reassess their underwriting strategies to align with these new standards. This development could influence the drafting of policy wordings and exclusions, especially in the context of the **subscription market**, where consistency and clarity in coverage terms are crucial. **Underwriters** and **brokers** in the London Market should consider the implications of these exclusions on their portfolios, particularly in sectors heavily reliant on **AI** technologies. It is essential for risk managers to evaluate existing policies for potential gaps in coverage due to these new exclusions. Additionally, **claims teams** should prepare for an increase in inquiries regarding the applicability of these exclusions, necessitating clear communication with clients about the scope of their coverage in relation to **generative AI** risks.
For the London Insurance Market, the introduction of these exclusions is particularly relevant to technology liability and cyber insurance lines, where many Lloyd's syndicates are actively engaged. As Verisk Analytics' templates gain traction, London Market insurers may need to reassess their underwriting strategies to align with these new standards. This development could influence the drafting of policy wordings and exclusions, especially in the context of the subscription market, where consistency and clarity in coverage terms are crucial.