Insurers Adopt Clear AI Exclusions in Liability Policies by 2026
By 2026, insurers added explicit AI exclusions to clarify liability coverage.
Why it matters: Understanding these AI exclusions helps legal professionals advise clients on emerging AI risks and insurance coverage gaps. Clear policies reduce uncertainty in AI-related claims.
- Verisk introduced AI exclusion endorsements CG 40 47, CG 40 48, and CG 35 08 for Commercial General Liability policies effective January 1, 2026.
- Over 80% of U.S. state insurance regulators approved these AI exclusions by April 2026, including Florida, Connecticut, and Maryland.
- Insurers like Chubb, Travelers, and CNA incorporated AI exclusions into Technology Errors & Omissions policies in 2026.
- 'Silent AI' refers to older policies without explicit AI terms, creating unclear coverage that new exclusions remedy.
The insurance industry is actively addressing the unclear coverage of AI-related risks in liability policies. On January 1, 2026, Verisk’s Insurance Services Office (ISO) introduced standardized endorsement forms—CG 40 47, CG 40 48, and CG 35 08—to explicitly exclude AI-related claims from Commercial General Liability (CGL) policies. This step aims to end uncertainty about whether existing CGL policies cover damages or liabilities arising from artificial intelligence errors or failures.
By April 2026, more than 80% of U.S. state insurance regulators had approved these AI exclusion filings, with states such as Florida, Connecticut, and Maryland leading the way. These endorsements mark a regulatory consensus on the need for clear AI risk language to prevent coverage disputes and litigation.
Major insurers — including Chubb, Travelers, and CNA — have incorporated these AI-specific exclusions into their Technology Errors & Omissions (E&O) policies, which traditionally protected technology service providers against claims of negligence or failure. Given the unique risks AI introduces, insurers now explicitly exclude AI-related losses under these policies to limit potential liability.
The term "silent AI" describes legacy insurance policies that neither clearly cover nor exclude AI risks, leaving coverage ambiguous. Legal experts at Lander & Rogers warn that such uncertainty can lead to disputes in emerging AI litigation. By implementing explicit AI exclusions, insurers close these silent gaps.
Additionally, Insuriam, an insurance risk intelligence platform, reports that this shift motivates the development of standalone AI liability insurance products to fill coverage gaps left by traditional endorsements. Legal professionals and risk managers must track these evolving policy terms to accurately assess client exposure and recommend appropriate coverages as AI use expands.
By the numbers:
- 80% — U.S. state regulators' approval rate of Verisk's AI exclusions by April 2026
- January 1, 2026 — Effective date of Verisk’s AI exclusion endorsements
- 2026 — Year Chubb, Travelers, and CNA incorporated AI exclusions into Technology E&O policies
Yes, but: While AI exclusions clarify risk boundaries, they shift liability to clients, increasing the need for specialized AI insurance products, which are still emerging.
What's next: Expect ongoing regulatory reviews and increased uptake of standalone AI liability insurance products as AI use spreads through 2026 and beyond.