What Verisk's New AI Exclusions Actually Mean for Your Business

If you're running a small or mid-sized business that uses AI in any capacity — and statistically, you almost certainly are — there's a quiet shift happening in your commercial insurance that you need to know about.

Verisk, the data analytics company that provides the standard policy forms used by a majority of U.S. property and casualty insurers, has introduced new endorsement language that gives carriers a clear, standardized path to exclude AI-related claims from commercial general liability and professional liability policies.

This isn't hypothetical. It's happening now, and it's happening fast.

What Actually Changed

Verisk's advisory forms now include explicit AI exclusion endorsements that carriers can attach to standard CGL and professional liability policies. These endorsements give insurers the ability to carve out claims arising from the development, deployment, or use of artificial intelligence systems. The language is broad enough to cover everything from an AI chatbot giving bad advice to an automated hiring tool producing discriminatory outcomes.

How Carriers Are Responding

Carrier adoption has been swift but uneven. Some are applying exclusions broadly at renewal, while others are taking a more targeted approach:

Carrier Approach	What It Means	Impact
Blanket exclusion	AI endorsement applied to all new and renewal policies automatically	No AI-related claims covered, period
Conditional exclusion	Exclusion applied unless insured can demonstrate AI governance program	Coverage possible with documentation
Sublimited coverage	AI claims covered but with lower sublimits and higher retentions	Partial coverage with significant cost-sharing
Wait-and-see	No exclusion yet, but reserving right to add at next renewal	Current coverage intact, future uncertain

Real-World Scenarios: What Gets Denied

Scenario 1: The AI Chatbot That Gives Wrong Medical Advice

A healthcare startup deploys an AI triage chatbot that tells a patient their symptoms aren't urgent. The patient delays seeking care and suffers harm. Under a policy with an AI exclusion, the carrier can deny the professional liability claim entirely — the AI made the decision, and AI is excluded.

Scenario 2: The Hiring Tool With Disparate Impact

An HR tech company's AI resume screener systematically ranks minority candidates lower. An EEOC complaint results in a class-action suit. With an AI exclusion in place, the EPLI carrier can argue the discriminatory outcome was produced by an AI system and deny defense costs.

Scenario 3: The CRM That Leaks Customer Data

A SaaS company's AI-powered CRM tool ingests customer data to train recommendation models. That data is exposed in a breach. The cyber liability carrier points to the AI exclusion — the data processing that led to the breach was AI-driven.

Your 5-Step Action Plan

1. 01 Pull your current policy and read every endorsement. Look for any language referencing "artificial intelligence," "machine learning," "automated decision-making," or "algorithmic systems." If you see it, you likely have an exclusion.
2. 02 Ask your broker directly whether your carrier has adopted or plans to adopt AI exclusion language. Get it in writing. Don't accept vague reassurances.
3. 03 Inventory your AI usage. Every tool, every vendor, every automated workflow. Include the SaaS platforms you use that have AI features baked in — most do now.
4. 04 Document your AI governance. Carriers offering conditional coverage want to see policies, oversight processes, and human-in-the-loop safeguards. Having documentation ready can mean the difference between coverage and denial.
5. 05 Get a VectorIQ™ assessment. Our proprietary, patent-pending scoring methodology gives you a clear picture of where your AI exposure sits and what coverage gaps exist — in language that carriers and brokers actually understand.