Commercial insurers have moved from “discussing to implementing” artificial intelligence exclusions in contracts after industry analytics group Verisk released a set of standardised endorsement templates.

The templates from Verisk’s Insurance Services Office remove coverage for certain losses arising from the use of generative AI. ISO templates are widely regarded as industry standards, as most carriers worldwide utilise the Verisk unit’s policy wording expertise.

Darryl Smith, a partner at law firm Clyde & Co, says the ISO endorsements, released in January, represent an important step in helping insurers define, price and manage AI-related risks.

“For insurers, brokers and managing general agents, the focus is increasingly shifting from whether AI risks exist to how they should be underwritten, allocated and reflected in policy wordings as the claims landscape continues to evolve,” he said.

“The industry is now moving from discussion to implementation. The 2026 renewals will provide the first real indication of how widely carriers intend to adopt AI-specific exclusions, as the market moves from uncertainty towards more explicit risk allocation.”

One of the endorsement forms excludes coverage for bodily injury, property damage, and personal or advertising injury arising out of, or attributable to, generative AI.

Broker Gallagher says the exclusions have started to appear in commercial general liability policies, which “represents an important shift in how insurers are responding to emerging technology risk. Addressed proactively, this issue can help reduce uninsured exposure, avoid surprises at claim time, preserve bid competitiveness and support defensible risk transfer strategies.”