What is the difference between AI exclusions and AI sublimits?

Last verified: March 24, 2026

Answer

AI exclusions (like Verisk CG 40 47) eliminate all coverage for AI claims. AI sublimits (like Hamilton's) cap coverage at a lower amount but still provide some protection, often with governance incentives.

Carrier Endorsement Details

CG-40-47

Verisk — CG 40 47

Excludes bodily injury, property damage, and personal/advertising injury arising out of generative AI content, output, or interaction.

Key Provisions

Excludes BI and PD arising from AI-generated content or output
Excludes personal/advertising injury from AI use
Applies regardless of whether AI is owned, licensed, or embedded
Type: exclusion Policies: CGL
HAM-AI-2025

Hamilton — Hamilton AI Sublimit

Rather than excluding AI claims, applies a sublimit to AI-related professional liability claims, typically 25-50% of the policy limit.

Key Provisions

Applies sublimit (not exclusion) to AI-related claims
Sublimit typically 25-50% of aggregate policy limit
Requires AI governance documentation for full limit access
Includes incident response requirements for AI failures
Type: sublimit Policies: E&O, Cyber

Where this lands operationally

Gridex turns the compliance or coverage question into operated workflow controls: intake, review points, audit trails, and the places a person stays in the decision.

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Use this research to identify the workflow, review points, and operating controls that would matter in your organization.

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Related Questions

  • What is Verisk CG 40 47? Verisk CG 40 47 is a CGL policy endorsement that excludes coverage for bodily injury, property damage, or personal/advertising injury arising out of AI systems.
  • What is the Hamilton AI sublimit endorsement? Hamilton's AI endorsement takes a sublimit approach rather than full exclusion, providing capped coverage for AI-related claims with governance incentives that can increase the sublimit for organizations with documented AI risk management programs.