Why it matters for your company
The standard-forms bureau defined generative AI for these endorsements as a machine-based learning system or model trained on data with the ability to create content or responses, including text, images, audio, video or code (Independent Agent magazine, 2025-10-21). One version removes both bodily injury and property damage coverage and personal and advertising injury coverage, and another removes only the latter.
Insurers adopt standard forms by filing them state by state. A reinsurer's research note counted more than sixty insurer groups filing to adopt AI exclusions, with more than eighty percent of filings approved (2026-08-26). Whether one sits on your renewal is found on the endorsement schedule, and whether it reaches your product depends on how closely your model fits the definition.
Related terms
- Absolute AI exclusionAn exclusion that removes any claim arising from, relating to or involving artificial intelligence in any way, with no carve-back for the insured's ordinary use. For a company whose product is a model or a machine, it can leave the policy close to empty.
- 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.
- Silent AIAI-related risk that a policy neither expressly covers nor expressly excludes, so whether it responds depends on how general wording is read after a loss. The term borrows from silent cyber.
- 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.
- EndorsementA page attached to a policy that changes it: it adds coverage, removes it, names a new party, or rewrites a definition. The endorsement controls over the base form wherever the two disagree.