Berkshire Hathaway, Chubb, and Travelers are restricting AI-related damage coverage in standard commercial liability policies. Insurers are currently obtaining regulatory approval across multiple U.S. states for AI exclusion clauses.
The implementation process began in the fall of 2025. Specific coverage exclusions will take effect in early 2026.
Insurers cite difficulties in modeling systemic risks like copyright infringement, discrimination claims, and AI output errors. This move creates a coverage gap for businesses relying on general liability or errors and omissions policies.
This shift mirrors the insurance industry's past approach to cyber risk. The development suggests the future emergence of a standalone market for AI insurance policies.