Do AI exclusions cover shadow AI?

Last verified: March 24, 2026
Yes. AI exclusion endorsements like Verisk CG 40 47 and Berkley PC 51380 use broad language covering any AI use, including unsanctioned shadow AI tools used by employees without authorization.

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
PC-51380

W.R. Berkley — PC 51380

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

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Related Questions

  • 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.
  • What is shadow AI? Shadow AI refers to artificial intelligence tools and services used by employees without IT department knowledge or organizational approval — including ChatGPT, AI writing assistants, and AI-powered browser extensions.