2026-10-22 · Source: Insurance Business US
Summary in 3 Points • Insurers are adding AI exclusions and introducing dedicated AI cover, prompting businesses to review their insurance programs. • Verisk's ISO has made three optional generative AI exclusion endorsements available for commercial general liability policies. • Brokers must assess AI exposure at every renewal, as exclusions vary significantly between carriers. --- Businesses using artificial intelligence are urged to review their insurance programs as insurers increasingly incorporate AI exclusions and offer dedicated AI cover. Broker Joe Gendelman highlights that many business owners focus on AI's benefits rather than the potential insurance implications if issues arise. Verisk's ISO has introduced three optional generative AI exclusion endorsements for commercial general liability policies, reflecting a significant shift in policy wording. The introduction of these endorsements means that brokers must carefully assess AI exposure at each renewal, as exclusions can differ between carriers. This situation mirrors the early days of cyber insurance, where many businesses did not initially recognise it as a separate risk. As AI becomes more integrated into business operations, documenting its use and the human checks in place will likely become crucial in underwriting discussions, allowing clients to negotiate better coverage terms. The introduction of AI exclusions in policies necessitates brokers to assess AI exposure at each renewal, impacting coverage negotiations.
The introduction of AI exclusions in policies necessitates brokers to assess AI exposure at each renewal, impacting coverage negotiations.