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Security Independently confirmed2 publishers 3 min read Published Updated

Verisk files three endorsements that let carriers exclude generative AI from general liability

The forms carry a January 2026 edition date and Verisk says carriers are already interested, which means the next renewal can quietly move the cost of an AI deployment mistake onto your own balance sheet.

The Watch · Security desk

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Illustration accompanying Verisk files three endorsements that let carriers exclude generative AI from general liability
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What happened

  • Verisk's ISO Core Lines and Emerging Issues teams built new general liability endorsements that let carriers exclude generative AI exposures, after insurers asked for underwriting tools to price the risk.
  • The exclusionary forms carry a January 2026 edition date and are described by Verisk as giving insurers the ability to generally exclude the exposure.
  • CG 40 47 is the broadest of the three, cutting bodily injury, property damage and personal and advertising injury out of Coverages A and B on both occurrence and claims-made CGL policies.

Why it matters

  • Who's exposed exposure With all three endorsements attached, third-party injury claims traced to a generative AI system have no general liability or products liability policy behind them, and the loss sits with the insured.
  • What it limits constraint The definition turns on what a system can produce, so engineering teams using code assistants are inside the excluded class alongside the marketing chatbot nobody wanted to own.
  • Who has to decide decision Renewal negotiation becomes the control point: whether the endorsement comes off, gets narrowed, or gets bought back is a legal and security conversation held before quote acceptance rather than after a claim.
  • What it sets up precedent Berkley's absolute wording sets the drafting ceiling that later filings can copy, so the ISO forms are the conservative version of where exclusions go next.

General liability is the policy that answers when a third party says your product or your words hurt them. That is where a chatbot harm claim lands, and CG 40 47 removes bodily injury, property damage and personal and advertising injury from Coverages A and B when the claim arises out of generative artificial intelligence [3]. The definition in the forms is written around what the system does, not where it sits: a machine-based learning system or model trained on data with the ability to create content or responses, including text, images, audio, video or code [6]. Verisk says it built that wording from existing government and NAIC definitions [7].

The drafting itself, not anyone's forecast, sets the consequences here. The three forms together close off the general liability and products/completed operations routes for the same class of loss: Coverages A and B under CG 40 47, Coverage B alone under CG 40 48, and Section I products liability under CG 35 08 [3][4][5][13]. And because the definition names code, the excluded class reaches coding assistants inside the software pipeline, not only customer-facing text and images [14].

This matters at scale because of how many companies are exposed. Bain reports 95% of U.S. companies currently use generative AI [9]. That is 19 in 20 [17], against a form that a carrier can attach at renewal to any commercial general liability policy on the ISO base [3].

The filing and the form language are public record [1][2]. How many carriers actually adopt the exclusions is not: Verisk says it has already received considerable carrier interest and expects insurers to roll the exclusions out quickly, and that expectation is Verisk's own, reported by IndependentAgent.com, with no count of carriers attached [18][15]. The endorsements are optional, so nothing forces a carrier to use them [3].

The ceiling is higher than the ISO forms. Berkley has already deployed an absolute AI exclusion covering any actual or alleged use, deployment or development of artificial intelligence by any person or entity, including the generation, creation or dissemination of any content using AI [12]. Surplus lines carriers moved on AI exclusions before the ISO filing [11]. Meanwhile the claims that prompted the underwriting response are live: at least 11 major U.S. suits spanning copyright infringement to harmful chatbot interactions, including a suit filed last year by the parents of a child who died by suicide, alleging information from a generative AI chatbot contributed to the death [8][10].

The endorsement numbers show up on the schedule of forms on a renewal quote, which is the cheapest place to learn whether a carrier attached one and whether any affirmative product replaces what it removes [16].

What to watch

  • State filing approvals and the first count of carriers actually attaching CG 40 47, CG 40 48 or CG 35 08.
  • Whether renewal quotes start carrying the endorsement by default rather than on request, and what removing it costs.
  • Whether any of the 11 pending U.S. suits produces a coverage ruling before the January 2026 forms are in wide use.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence58
Adoption22
Hype gap+20
Incentives60
Confidence62
Why these scores

Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    Verisk's ISO Core Lines and Emerging Issues teams developed new general liability endorsements that allow carriers to exclude generative AI exposures, after insurers requested underwriting tools to address the emerging risk.

    Reported SupportedView cited source
  2. [2]

    The exclusionary forms carry a January 2026 edition date and are effective January 2026, providing insurers the ability to "generally exclude this emerging exposure," according to Verisk.

    Reported SupportedView cited source
  3. [3]

    CG 40 47 Exclusion - Generative Artificial Intelligence is an optional endorsement for use with the ISO Commercial General Liability Coverage Part, occurrence and claims-made versions, excluding coverage under Coverage A and Coverage B with respect to bodily injury, property damage or personal and advertising injury arising out of generative artificial intelligence.

    Reported SupportedView cited source
  4. [4]

    CG 40 48 Exclusion - Generative Artificial Intelligence (Coverage B) is an optional endorsement for the ISO Commercial General Liability Coverage Part that excludes coverage under Coverage B with respect to personal and advertising injury arising out of generative artificial intelligence.

    Reported SupportedView cited source
  5. [5]

    CG 35 08 Exclusion - Generative Artificial Intelligence is an optional endorsement for the ISO Products/Completed Operations Liability Coverage Part that excludes coverage under Section I with respect to bodily injury or property damage arising out of generative artificial intelligence.

    Reported SupportedView cited source
  6. [6]

    The forms define "generative artificial intelligence" as a machine-based learning system or model that is trained on data with the ability to create content or responses, including but not limited to text, images, audio, video or code.

    Reported SupportedView cited source
  7. [7]

    Verisk based the generative AI definition on existing definitions provided by government sources and NAIC definitions.

    Reported SupportedView cited source
  8. [8]

    At least 11 major lawsuits are currently underway in the U.S. ranging from copyright infringement to harmful chatbot interactions.

    Reported SupportedView cited source
  9. [9]

    A recent Bain & Company report describes generative AI's use as soaring and states that 95% of U.S. companies currently use generative AI, calling it a business staple and noting that accuracy concerns are beginning to ease.

    Reported Supported Source: Bain & Company report cited by IndependentAgent.comView cited source
  10. [10]

    Last year the parents of a child who died by suicide filed a lawsuit alleging that information furnished by a generative AI chatbot contributed to the child's death.

    Reported SupportedView cited source
  11. [11]

    Some surplus lines carriers have already deployed AI exclusions, and regulators are creating regulations for high-risk and specific-use cases of generative AI.

    Reported SupportedView cited source
  12. [12]

    Berkley has rolled out an absolute AI exclusion that excludes any actual or alleged use, deployment, or development of Artificial Intelligence by any person or entity, including but not limited to the generation, creation or dissemination of any content or communications using Artificial Intelligence.

    Reported SupportedView cited source
  13. [13]

    An insured with CG 40 47, CG 40 48 and CG 35 08 all attached has no general liability or products/completed operations coverage for bodily injury, property damage or personal and advertising injury arising out of generative AI.

    Derived Supported
  14. [14]

    Because the forms' definition of generative AI includes systems able to create code, the excluded class covers internal coding assistants and not only customer-facing content generation.

    Derived Supported
  15. [15]

    The account of the Verisk forms, their edition dates and carrier interest was published as a Virtual University resource by IndependentAgent.com.

    Reported Supported
  16. [16]

    IndependentAgent.com notes that when exclusions arise new markets open, under a section headed "Filling the Gap: New Coverage for Gen AI Liability Exposures."

    Reported SupportedView cited source
  17. [17]

    The Bain figure of 95% of U.S. companies using generative AI is 19 in 20 companies.

    Derived Supported
  18. [18]

    Verisk has already received great interest from carriers and expects that insurers will quickly roll out these exclusions based on that interest.

    Reported Insufficient Source: Verisk, as reported by IndependentAgent.comView cited source

Sources

2 independent publishers whose own reporting we read for this story.

  1. independentagent.com

    1 article · August 27, 2026

    Verisk to Roll Out New General Liability Exclusions for Generative AI Exposures   - IndependentAgent.com

  2. moneygeek.com

    1 article · August 27, 2026

    Business Insurance May Drop AI Coverage in 2026

Topics and entities

Topics

  • Insurance policy exclusions
  • Generative AI liability
  • Commercial general liability insurance

Entities