Bruce Gendelman Insurance Warns of Emerging AI Exclusions in Commercial Liability Policies
Bruce Gendelman Insurance is advising businesses to conduct immediate reviews of their insurance programs due to the emergence of artificial intelligence (AI) exclusions within commercial policies. As companies integrate AI into core operations—including marketing, financial analysis, and decision-making—insurers are responding by introducing specific language that may limit coverage for AI-related incidents. The evolving landscape includes new AI-specific exclusions in General Liability, Errors & Omissions (E&O), Cyber, and Management Liability policies. While some insurers are offering specialized AI liability products, others are narrowing existing protections. Joe Gendelman, President and CEO, compares the current situation to the early development of cyber insurance, noting that the rapid adoption of AI is outpacing traditional policy evolution.
Topics: Artificial Intelligence Commercial Insurance Liability Coverage Risk Management