Berkshire Hathaway and Chubb are leading an industry-wide move to exclude artificial intelligence damages from corporate insurance policies. U.S. state regulators have begun approving these new policy exclusions.
The shift targets hard-to-quantify risks emerging from the rapid business adoption of generative AI. Insurers are introducing specific language to remove AI liabilities from general liability, cybersecurity, and errors and omissions (E&O) policies.
This strategy eliminates silent coverage where AI risks were previously implied by non-specific wording. Carriers aim to prevent systemic losses where a single AI model flaw impacts thousands of businesses simultaneously.