What is the difference between AI exclusions and AI sublimits?
Answer
AI exclusions and affirmative AI coverage sit at opposite ends of the same spectrum. An exclusion (like Verisk's CG 40 47) removes coverage for claims involving AI. Affirmative coverage does the reverse — it explicitly insures AI-related losses, sometimes at a sublimit (a cap below the main policy limit) and sometimes conditioned on documented AI governance. A wave of standalone affirmative AI products emerged in 2025-2026 (for example Armilla's AI liability policy underwritten at Lloyd's with Chaucer, later paired with cyber/tech E&O as 'Vanguard AI'), covering losses such as AI underperformance, errors, and hallucinations rather than excluding them.
AI exclusions (like Verisk CG 40 47) eliminate coverage for AI claims. At the other end, affirmative or sublimited AI coverage — such as the standalone AI liability products that launched in 2025-2026 — provides protection for AI-related losses rather than removing it, sometimes capped or conditioned on governance controls.
Scope
General business and insurance-risk analysis, not legal advice. The same policy can mix approaches — excluding AI in one form while affirmatively covering or sublimiting it in another. Whether you face an exclusion, a sublimit, or affirmative coverage depends on each policy's specific wording and your carrier's filed forms. Confirm specifics with your broker.
Carrier Endorsement Details
Verisk — CG 40 47 01 26
Excludes bodily injury, property damage, and personal/advertising injury arising out of generative AI under Coverage A and Coverage B. Part of the January 2026 ISO edition; companion forms address narrower scopes: CG 40 48 (Coverage B / personal and advertising injury only) and CG 35 08 (products and completed operations).
Key Provisions
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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- 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.