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Insurers draft AI exclusions for general liability policies as AI risk grows

Risk & Insurance says many AI-related losses are already covered under E&O and professional liability, but general liability policies are seeing emerging AI-specific exclusions.

Reported · Written up by our desk · Liability Insurance

Insurance products are being reshaped to address AI risk, with carriers pitching new coverage while also drafting exclusions, according to Risk & Insurance.

The outlet notes that, while AI liability has been widely discussed as an unpriced risk, much of the exposure may still fit existing policies, particularly errors and omissions and professional liability, which it says have not yet added AI exclusions. It also points to cyber and directors and officers coverage as areas where AI exclusions are not appearing in the same way.

General liability, however, is highlighted as different: some carriers have begun filing AI exclusions with state regulators, partly because the risk is less understood and exclusions are viewed as easier than underwriting a new peril.

Risk & Insurance also flags two potential coverage gaps, first that AI performance risk is described as mostly uninsured, and second that affirmative, policy-explicit AI coverage is still early and limited. The outlet cites Munich Re as having the most developed standalone AI policy and says CFC has been adding explicit AI language across seven core policy lines, including tech E&O, professional liability and cyber, though demand has not yet increased due to losses not materializing at scale.

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