2026-11-13 · Source: Insurance Business US
Summary in 3 Points • Generative AI-related lawsuits in the US grew 978% between 2021 and 2025, with a 137% increase in 2024-2025. • Major carriers like Chubb and Berkshire Hathaway have received approval to add AI exclusions to liability policies. • The Lloyd's Market Association has drafted AI endorsements and exclusions in just two years, a significant acceleration compared to cyber. --- The rise of generative AI has led to a staggering 978% increase in related lawsuits in the US from 2021 to 2025, with a notable 137% surge in filings expected in 2024-2025. Major insurers, including Chubb and Berkshire Hathaway, are responding by introducing AI exclusions in their commercial general liability and professional liability policies, leaving many businesses unaware of their uninsured exposures. Brokers face challenges as they navigate the rapidly changing exclusion landscape, which complicates coverage for clients using AI in various sectors such as law, finance, and healthcare. The Lloyd's Market Association has swiftly developed AI endorsements and exclusions, completing this process in just two years, compared to the lengthy 20-year timeline for cyber. This rapid evolution indicates a significant shift in the market's approach to emerging risks. As carriers implement these exclusions, brokers must proactively address AI coverage in client programs to avoid leaving them vulnerable to uncovered claims, which could also expose brokers to their own errors and omissions risks. The rapid introduction of AI exclusions in liability policies reflects a significant shift in underwriting practices, impacting brokers and clients in sectors like D&O and E&O.
The rapid introduction of AI exclusions in liability policies reflects a significant shift in underwriting practices, impacting brokers and clients in sectors like D&O and E&O.