How to Check If Your Business Insurance Has an AI Exclusion Endorsement (2026 Guide)

Right now, there may be a clause buried in your business insurance policy that voids your coverage the moment an AI-related claim comes in. It is called an AI exclusion endorsement, and most business owners do not know they have one until it is too late. This guide walks you through exactly how to find it.

What Is an AI Exclusion Endorsement?

An AI exclusion endorsement is a document that your insurance carrier attaches to your commercial general liability (CGL) policy to remove coverage for claims related to artificial intelligence. It is not a separate policy. It is a modification to your existing policy that narrows what is covered.

The most widely adopted version is Verisk's CG 40 47, formally titled "Exclusion — AI Technology." This form was created by Verisk (formerly ISO), the organization that develops standardized insurance forms used by the majority of carriers in the United States. When CG 40 47 is attached to your policy, your insurer will not pay for any claim that arises out of the use of AI technology — including bodily injury, property damage, and personal and advertising injury.

But CG 40 47 is not the only form to watch for. Carriers can also use proprietary endorsement language that achieves the same effect. Some use manuscript endorsements drafted by their own legal teams, which may not carry a standardized form number at all. The key point: any endorsement that excludes or limits AI-related claims can leave your business exposed.

The Three Types of AI Insurance Endorsements

Before you start checking your policy, it helps to understand the three main categories of AI-related endorsements that carriers are using:

A full exclusion (CG 40 47) is the worst-case scenario. A limitation (CG 40 48) is less severe because you retain some coverage, even if restricted. The umbrella exclusion (CG 35 08) is dangerous because it removes your safety net — even if your GL policy still covers AI claims, your umbrella will not pay above the GL limits.

Step-by-Step: How to Check Your Policy for an AI Exclusion Endorsement

Here is exactly how to determine whether your business insurance policy contains an AI exclusion endorsement. You do not need an insurance background to do this.

Step 1: Find Your Complete Policy Documents

Your policy is not just the declarations page (the summary page with your premium and coverage limits). It is the full document, which typically includes the declarations page, the policy form, and all endorsements. Endorsements are the critical part here — they are supplemental pages that modify your base policy.

Where to find your documents:

• Your broker or agent — Email them and ask for "the complete policy including all endorsements." Be specific. If you just ask for "my policy," they may only send the declarations page.
• Your carrier's online portal — Most carriers have policyholder portals where you can download your full policy documents.
• Your email — Search for emails from your carrier or broker with PDF attachments. Your most recent renewal package should include all endorsements.

Step 2: Locate the Endorsements Section

Endorsements are usually listed at the end of your policy document, after the main coverage forms. They may also be in a separate document or section labeled "Endorsements" or "Schedule of Forms and Endorsements."

Your declarations page often includes a list of all attached endorsements by form number. Look for a section titled something like "Forms and Endorsements Applicable" or "List of Forms and Endorsements." This is your roadmap for what to review.

Step 3: Search for AI-Related Language

If you have a digital copy (PDF), use Ctrl+F (or Cmd+F on Mac) to search for these terms:

If any of these terms appear in an endorsement, read the full endorsement carefully. Pay special attention to whether the language says "exclusion" (no coverage) versus "limitation" (reduced coverage). The distinction makes a significant difference.

Step 4: Check Both Your GL and Umbrella Policies

This is a step many business owners miss. Your commercial general liability policy and your umbrella policy are separate documents and may have different endorsements attached. A carrier might leave your GL policy untouched but add CG 35 08 to your umbrella, or vice versa.

Repeat steps 1 through 3 for every liability policy you hold. This includes your CGL, umbrella, excess liability, and any professional liability or errors and omissions (E&O) policies.

Step 5: Check for Mid-Term Endorsement Changes

Some carriers add endorsements mid-term rather than waiting for renewal. They are required to notify you, but these notices can easily be missed — especially if they arrive as a routine-looking letter or email. Check whether your carrier has sent any endorsement amendments since your last renewal date.

What to Do If You Find an AI Exclusion Endorsement

If your search reveals that your policy has an AI exclusion endorsement, do not panic — but do act quickly. Here is what to do depending on what you found:

If You Found CG 40 47 (Full Exclusion)

This is the most serious situation. Your policy provides zero coverage for any claim related to AI technology. You have several options:

1. Contact your broker immediately. Ask them to negotiate with your carrier to replace the CG 40 47 with a CG 40 48 (limitation) instead. Carriers are more willing to do this for businesses that can demonstrate responsible AI practices.
2. Prepare AI governance documentation. Underwriters evaluate risk, and documented governance shows you are managing AI responsibly. This includes an AI usage inventory, an acceptable use policy, a human review process, data handling rules, and an incident response plan.
3. Shop alternative carriers. Not every carrier is applying full exclusions. Your broker can market your policy to carriers that offer more favorable AI terms, especially if you come to the table with governance documentation.
4. Consider standalone AI liability coverage. Specialty carriers like Hartford Steam Boiler (HSB) are now offering AI-specific liability policies that can fill the gap created by exclusion endorsements.

If You Found CG 40 48 (Limitation)

This is less severe but still requires attention. Review the specific conditions and sub-limits. Key questions to ask:

• What is the sub-limit for AI-related claims? Is it adequate for your risk exposure?
• Are there conditions you must meet to maintain coverage (such as human oversight requirements)?
• Does the limitation apply to all types of AI, or only certain categories?

If You Found Nothing

If your policy does not currently contain an AI exclusion endorsement, that is good news — but it does not mean you are safe permanently. Carriers are adding these endorsements at an accelerating rate, and your next renewal is when it is most likely to appear. The best time to prepare is now, before your renewal package arrives.

How AI Governance Documentation Protects Your Coverage

The single most effective thing you can do to prevent an AI exclusion endorsement — or to get one removed — is to have AI governance documentation in place before your carrier makes its underwriting decision.

Underwriters are not blindly excluding every business. They are assessing risk. A business with no documented AI practices looks like an unknown risk, and unknown risks get excluded. A business with clear governance documentation looks like a manageable risk, and manageable risks get covered.

What you need at minimum:

• An AI tool inventory listing every AI tool your business uses and what it is used for
• An acceptable use policy defining what employees can and cannot do with AI tools
• A human review process documenting how AI-generated outputs are reviewed before reaching clients
• A data handling policy specifying what data can be input into AI systems
• An incident response plan outlining your process if an AI-related error occurs

The CoverMyAI Governance Kit ($29) generates all five of these documents, customized to your industry and the specific AI tools you use. Most businesses complete it in 15 minutes. It is designed specifically for the small businesses that do not have compliance teams or legal departments but still need to demonstrate responsible AI practices to their insurers.

Common Questions About AI Exclusion Endorsements

Does an AI exclusion apply even if I only use ChatGPT for internal tasks?

Yes. The Verisk CG 40 47 endorsement defines "AI technology" broadly and uses the phrase "arising out of," which courts interpret expansively. If a claim can be traced back to any use of AI — including drafting internal documents that later become part of a dispute — the exclusion can apply.

Can my carrier add an AI exclusion without telling me?

Carriers are required to provide notice of endorsement changes, but the notice requirements vary by state and policy type. In practice, these notices are often included in renewal packages as part of a long list of form changes. It is easy to miss. This is why proactively checking your policy is so important.

I do not build AI products. Can I still be affected?

Absolutely. The exclusion covers the use of AI, not just the development of AI. If your accounting firm uses AI-assisted tax software, or your marketing agency uses generative AI for content creation, or your consulting firm uses AI to analyze client data, you are using AI technology as defined by these endorsements.

Your Action Plan

Checking your policy for an AI exclusion endorsement is something you can do today. Here is the short version:

1. Run the free gap check to understand your risk level based on your industry and AI usage.
2. Pull your complete policy documents including all endorsements from your broker or carrier portal.
3. Search for AI-related terms using the checklist above. Check your CGL, umbrella, and any professional liability policies.
4. Calculate your AI risk exposure to quantify the potential financial impact of a coverage gap.
5. Get your governance documentation in order before your next renewal so you can demonstrate responsible AI use to underwriters.

The businesses that check now and prepare in advance are the ones that keep their coverage intact. The ones that wait until a claim is denied are the ones that learn the hard way what an AI exclusion endorsement really means.