Why it matters for your company
The word absolute is about the connecting language. Arising from, relating to, or involving any use of AI reaches claims where the AI played a minor part, and courts tend to read connecting phrases like these broadly. Law firm commentary reported one such exclusion on management-liability forms in 2025 (Hunton Andrews Kurth, 2025-05-28).
An AI company offered this on D&O or E&O should treat it as a declination in practice and look for another insurer. A non-AI company may accept it, but should first check whether the exclusion reaches the productivity tools its own staff use every day.
Related terms
- Limited AI exclusionAn exclusion that removes a defined slice of AI-related claims, such as those arising out of generative AI output, while the rest of the policy keeps responding. The argument at claim time is whether the loss falls inside the slice.
- Generative AI exclusionAn endorsement that removes coverage for claims arising out of generative artificial intelligence. Standard-form versions for general liability, including one for products and completed operations, took effect in January 2026.
- Affirmative AI coveragePolicy wording or a standalone product that names AI-related losses as covered, instead of leaving them silent or excluding them. It arrives as an endorsement to cyber or E&O, or as a dedicated AI liability policy.
- ExclusionA clause that removes a type of loss, activity or property from what a policy responds to. Exclusions sit in the base form and in endorsements, and at claim time they decide the outcome more often than the coverage grant does.