Overview
- Insurers have begun adding artificial intelligence carve-outs to policies, including wording that excludes any claim "in any way involving" the insured’s use of generative AI.
- The sweeping language could block coverage if AI appears anywhere in the chain of events that led to a loss or allegation.
- Corporate use of generative AI is rising across daily operations, raising the risk that future claims touch excluded tools and leave gaps in protection.
- During placement or renewal, policyholders can ask carriers to delete or narrow these clauses, working through brokers with strong access to underwriters.
- If a claim is refused under a new AI clause, companies should review the denial closely and consider insurance recovery counsel, with firms like Haynes Boone offering support.