AI Exclusions in Your Insurance Policy 2026: What's No Longer Covered (And What to Do)

# AI Exclusions in Your Insurance Policy 2026: What's No Longer Covered (And What to Do)

> **Quick answer:** Insurers are quietly adding AI exclusions to commercial general liability, D&O, E&O, property, and cyber policies in 2026. The Insurance Services Office (ISO) has introduced optional endorsements — codes CG 40 47 and CG 40 48 — that allow carriers to eliminate coverage for any claim "arising out of generative artificial intelligence." Berkley Insurance has gone further with an "absolute" AI exclusion in management liability policies. If you use AI tools at work and your policy renewed in 2026, there is a real chance you are uninsured for AI-related claims — and you have no idea.

The shift has been quiet, technical, and deliberate. Buried in the renewal paperwork of commercial insurance policies across the United States, a new category of exclusion clause is appearing: generative AI. And unlike most policy changes — which get explained in plain language — this one typically arrives as an endorsement code in a stack of renewal documents that most policyholders never read.

The result is a coverage gap that could cost businesses, freelancers, and professionals millions of dollars in uninsured liability. Here is exactly what changed, who is affected, and what you need to do before your next policy renewal.

## What Changed: ISO Endorsements CG 40 47 and CG 40 48

The inflection point came when the Insurance Services Office (ISO) — the industry body that creates standardized insurance policy language used by hundreds of carriers — introduced a set of optional endorsements specifically targeting generative AI exposures.