Insurers start writing AI out of standard business policies, WSJ reports

Standard business insurance is starting to exclude AI, The Wall Street Journal reports. Verisk's Insurance Services Office, which writes widely used policy forms, introduced optional exclusions for generative AI this year and is weighing more for other AI risks, including agentic AI; AIG and Chubb are among insurers that can use them. Broker Aon says more than 90% of AI risks covered by insurance are "silent", meaning policies neither clearly cover nor exclude them, which leaves room for disputes. Dedicated AI cover is small: Munich Re's policy for AI model errors goes up to $50 million. Marsh, the largest broker, wrote to insurers that excluding AI would be a "backward step" and says it will advise clients to look elsewhere if an insurer adds the exclusions.