Answer
Yes. Autonomous AI agents that take actions without human approval create compounded liability exposure because they can trigger both regulatory violations and insurance exclusions independently, with attribution of responsibility still legally unsettled.
Carrier Endorsement Details
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
Absolute AI exclusion for D&O, E&O, and Fiduciary Liability — eliminates coverage for any claim "based upon, arising out of, or attributable to" AI use.
Key Provisions
Absolute exclusion — no coverage for any AI-related claim
Applies to claims 'based upon, arising out of, or attributable to' AI
Covers owned, licensed, and third-party AI systems
No carve-back for incidental AI use
Type: exclusion Policies: D&O, E&O, Fiduciary
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
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- Does shadow AI trigger insurance exclusions? Yes. AI exclusion endorsements like Verisk CG 40 47 and Berkley PC 51380 apply to all AI use — including unsanctioned shadow AI tools — meaning unauthorized employee AI use can void coverage.
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.