Verisk CG 40 47 Explained: The AI Technology Exclusion Reshaping Business Insurance

Verisk's CG 40 47 endorsement is the single most important insurance form to come out of the AI era. It gives carriers a standardized mechanism to completely exclude AI-related claims from commercial general liability policies. If you run a business that uses AI in any capacity, you need to understand this form.

What Is Verisk CG 40 47?

CG 40 47, formally titled "Exclusion — AI Technology," is an endorsement form developed by Verisk (the organization formerly known as ISO that creates standard insurance forms used across the industry). When a carrier attaches this endorsement to a commercial general liability (CGL) policy, it adds an exclusion for claims arising out of AI technology.

The form defines "AI technology" broadly. It covers machine learning systems, natural language processing, computer vision, generative AI, large language models, and related technologies. This is not a narrow definition targeting only companies that build AI — it encompasses any business that uses AI tools in its operations, including off-the-shelf products like ChatGPT, Microsoft Copilot, and Google Gemini.

What Does CG 40 47 Exclude?

The Verisk CG 40 47 endorsement excludes three categories of claims from CGL coverage:

The critical word in the endorsement is "arising out of." In insurance law, "arising out of" is interpreted broadly. It does not require that AI was the sole cause or even the primary cause of the injury. If AI technology was part of the chain of events that led to a claim, the exclusion can apply.

For a small business, this means that if you use ChatGPT to draft a client proposal, and something in that proposal leads to a professional dispute, your insurer could argue the claim "arose out of" AI technology and deny it under CG 40 47.

CG 40 47 vs. CG 40 48: Exclusion vs. Limitation

Verisk also filed CG 40 48, titled "Limitation — AI Technology." Understanding the difference between these two forms is important:

If your carrier is considering an AI-related endorsement, CG 40 48 is significantly better than CG 40 47 from your perspective. With CG 40 48, you still have some AI coverage, even if it comes with conditions. With CG 40 47, you have none.

The Umbrella Problem: CG 35 08

Many business owners assume that even if their GL policy excludes AI, their umbrella policy would still provide a safety net. Verisk anticipated this and filed CG 35 08, the AI Technology Exclusion for Commercial Umbrella policies.

CG 35 08 mirrors CG 40 47 but applies to umbrella and excess liability policies. When a carrier attaches both forms, the AI exclusion extends through the entire liability stack. There is no fallback coverage for AI-related claims at any layer.

This is why understanding the full picture matters. Checking only your GL policy is not enough. You need to review your umbrella policy as well.

Which Carriers Are Implementing These Endorsements?

As of early 2026, several major carriers have begun attaching AI exclusion or limitation endorsements to commercial policies:

• AIG — One of the first major carriers to adopt AI exclusion language, particularly for technology-adjacent industries.
• WR Berkley — Implementing AI endorsements across its specialty lines, with a focus on professional services companies.
• Great American Insurance Group — Adding AI limitations to new and renewal policies, with the specific form varying by risk profile.
• Hamilton Insurance Group — Including AI endorsements as part of their underwriting updates for 2026 renewals.

This is not an exhaustive list. Carriers across the market are evaluating these forms, and the adoption rate is accelerating. If your carrier has not added AI endorsements yet, there is a strong chance they will consider it at your next renewal.

How AI Governance Documentation Helps

Here is the good news: carriers are not universally applying the harshest exclusion (CG 40 47) to every policy. Underwriters are making risk-based decisions, and businesses that can demonstrate responsible AI governance are more likely to receive the more favorable CG 40 48 limitation — or avoid AI endorsements altogether.

What counts as AI governance documentation for a small business? It does not need to be a 50-page compliance manual. At minimum, insurers want to see:

• An AI usage inventory — a list of which AI tools you use and what you use them for
• An acceptable use policy — guidelines for employees on when and how to use AI tools
• A human review process — documentation that AI-generated outputs are reviewed by a human before being sent to clients or used in decision-making
• A data handling policy — rules about what data can and cannot be input into AI tools
• An incident response plan — what happens if an AI-related error occurs

The CoverMyAI Governance Kit ($29) provides templates for all five of these documents, customized to your industry and the AI tools you actually use. Most businesses complete it in about 15 minutes. It is the most cost-effective step you can take to protect your coverage.

What to Do Next

The Verisk CG 40 47 endorsement is reshaping business insurance in real time. Here is your action plan:

1. Take the free gap check to assess your current exposure level based on your industry, AI usage, and policy type.
2. Review your policy documents for any reference to CG 40 47, CG 40 48, or CG 35 08. Check both your GL and umbrella policies.
3. Document your AI governance before your next renewal conversation. Having documentation ready demonstrates to underwriters that you take AI risk seriously.
4. Talk to your broker proactively. Do not wait for your renewal package. Start the conversation now so your broker has time to shop alternatives if needed.

The businesses that act now — before their next renewal cycle — are the ones that will maintain the best coverage terms. Once an exclusion is attached, removing it is significantly harder than preventing it in the first place.