Has Your Carrier Already Decided AI Isn't Covered?
Send one email this week. Ask your broker: has any AI exclusion endorsement been filed by our carrier in the states where we operate, and does our current general liability policy respond to a claim from an AI monitoring or documentation failure? Require the answer in writing.
This isn't a hypothetical. Gallagher's 2026 AI Adoption research found that a fifth of insurance professionals surveyed reported a client had already taken an AI-related loss. (Disclosure: Gallagher is my employer.) Of those losses, just over half were covered in full. Forty-four percent were partially covered. Three percent were uninsured. Nearly half of the AI losses that have already happened landed at least partly on the policyholder.
That gap has a name now: silent AI. It's the same structural blind spot the industry lived through with silent cyber a decade ago, exposure that a policy doesn't explicitly cover or exclude. The difference is that silent cyber took years to surface. AI exclusions are being filed right now.
ISO introduced three new endorsements this year: the Generative Artificial Intelligence Endorsement CG 40 47, the Generative Artificial Intelligence (Coverage B Only) Endorsement CG 40 48, and the Generative Artificial Intelligence Endorsement CG 35 08. Together they let a carrier exclude bodily injury, property damage, and personal and advertising injury arising from generative AI out of a standard commercial general liability policy.
Put the two halves of this together. Your accreditor now requires you to document that AI is in use. Your carrier may be filing language that excludes losses arising from it. Somebody in your organization has to reconcile those two facts on purpose, before your next renewal, not after an incident.
Here's the wider pattern, in case the exclusion still feels like an edge case. Gallagher Re's research with MIT found generative-AI lawsuit filings up 978% from 2021 to 2025, with growth accelerating every year. (Disclosure: Gallagher Re is an affiliate of my employer.) The absolute numbers are still small, but personal injury claims already make up over 10% of that caseload, and the report defines that category as harm tied to privacy violations and what it calls digital dignity. In senior housing, digital dignity lives in a resident's bedroom. It's the one category on that list with your name on it.
The 30-Day AI Coverage and Contract Audit, in three moves. Days 1 to 7: the coverage question, in writing, the broker email above. Days 8 to 20: read the indemnity against the exclusion. Pull every AI vendor agreement and lay the vendor's indemnity language next to your carrier's exclusion language on the same page. The space between them is retained risk your organization hasn't priced yet. Days 21 to 30: make the CARF file and the underwriting file the same file. What an accreditor wants to see and what an underwriter wants to see before writing back coverage they just filed to exclude are nearly identical documents. Build it once. Present it twice.
An operator who walks into renewal with a governance file has a negotiating position. A vendor brochure gets you a quote, not a negotiation.