New Trades Coverage Data Shows Rapid Adoption of AI Exclusions in Business Liability Insurance
Nationwide review of every commercial insurance filing since the first forms appeared finds 4,078 filed form adoptions
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Trades Coverage today released an analysis showing that insurers are rapidly filing generative AI exclusions for the liability policies contractors use when work goes wrong. The analysis identified 4,078 filed form adoptions across 49 states and the District of Columbia through July 31, 2026, up from zero in mid-2025. If an AI-assisted estimate, takeoff, design, or marketing error contributes to a claim, the liability policy may not cover that claim.
Trades Coverage searched all 106,812 commercial insurance filings available through public filing systems in all 50 states and the District of Columbia from July 2025 through July 31, 2026. Carriers often adopt standard industry forms and sometimes file their own forms. The analysis counted one filed form adoption for each carrier or program filing one specific generative AI exclusion form for use in one state.
The first adoptions appeared in August 2025, one month after the Insurance Services Office, which develops standard insurance policy forms, published six generative AI exclusion forms. Of the 4,078 filed form adoptions, 3,955 involved coverage lines contractors and small businesses commonly buy, including commercial general liability, umbrella and excess, commercial package, businessowners, errors and omissions, and related lines. By July 31, 2026, 2,369 had taken effect.
“These exclusions are not confined to a narrow specialty policy. We found 3,955 of the 4,078 filed form adoptions in types of insurance contractors and small businesses already buy,” said Matt Levin, head of research at Trades Coverage.
“A contractor might use AI for one estimate, takeoff or design decision and do the rest of the job without it. If that work contributes to a later claim, the exclusion could apply even though AI was used for only a small part of the project. The reviewed filings do not identify a comparable insurance product for contractors that covers the same exposure.”
The full report, filing data, methodology, and charts are available at: https://tradescoverage.com/reports/genai-exclusion-adoption/
About Trades Coverage
TradesCoverage.com is the leading marketplace for contractors to compare insurance coverage from more than 400 providers.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260825224995/en/
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