Trades Coverage
Contractor reviewing digital job plans

The AI exclusion hiding in your contractor insurance

Generative AI is rapidly being adopted across the trades, and insurers are filing new exclusions for the policies contractors carry. If a job uses an AI tool, the claim may not be covered. We found 4,078 state-level exclusion records across 49 states and the District of Columbia, supported by 2,202 carrier filings.

Published August 2026Source State insurance filings (SERFF and Florida I-File)Data through July 31, 2026

Executive summary

  1. 01

    4,078 state-level records across 49 states and the District of Columbia show carriers filing generative AI exclusions

    Each record represents one carrier or program, one exclusion form, and one state. The records are supported by 2,202 filings. Multiple filings for the same carrier, form, and state are combined.

  2. 02

    2,369 records were in force by July 31

    Another 1,117 are scheduled for later dates. The dataset also includes 222 pending filings and 370 filed records where the effective timing was not established.

  3. 03

    3,955 of the 4,078 records involve coverage lines contractors and small businesses commonly buy

    These include general liability, umbrella and excess, commercial package, businessowners, errors and omissions, and related coverage lines.

  4. 04

    Contractors face three versions of the exclusion, each removing a different type of claim

    One excludes all AI-related injury and property damage, another excludes advertising claims, and a third removes coverage for finished work.

  5. 05

    The filings do not show a standalone admitted policy that replaces the excluded coverage

    That differs from cyber, where standalone policies were available as cyber exclusions spread. The reviewed filing set does not identify an admitted standalone generative AI product for contractors.

Supporting filings peaked at 413 in February

Nine supporting carrier filings entered the report window in August 2025. The monthly count reached 243 in October and peaked at 413 in February 2026. Carriers submitted another 180 in July. ISO, the organization that writes standard policy forms used by many insurers, published six generative AI exclusion forms in July 2025. Carriers then filed those forms and their own exclusion wording across commercial coverage lines.

Supporting carrier filings by month submitted

The 2,202 carrier filings supporting the state-level report records, placed by report-window month from July 2025 through July 2026. Two filings without a submitted month use their filed effective month.

01032073104130Jul 20259Aug 202537Sep 2025243Oct 2025222Nov 2025183Dec 2025221Jan 2026413Feb 2026186Mar 202696Apr 2026202May 2026210Jun 2026180Jul 2026

Source: Trades Coverage analysis of public SERFF filing metadata and filing text through July 31, 2026.

More than half were in force by July 31

By July 31, 2,369 state-level records were in force. Another 1,117 are scheduled after the cutoff. May had the largest monthly increase, with 627 records reaching an effective date. The remaining 592 records are filed but pending or do not have established effective timing.

Established effective dates reach 3,486 by April 2027

Cumulative state-level records with reviewed evidence that they were in force or scheduled for a known date. Pending filings and records without established timing are not plotted.

08721,7432,6153,4864Sep 20259Oct 202515Nov 202525Dec 2025527Jan 2026741Feb 2026997Mar 20261,099Apr 20261,726May 20262,023Jun 20262,369Jul 20262,696Aug 20262,960Sep 20263,158Oct 20263,257Nov 20263,335Dec 20263,471Jan 20273,474Feb 20273,474Mar 20273,486Apr 2027

Source: Trades Coverage analysis of public SERFF filing metadata and filing text through July 31, 2026. Dates after July 2026 represent filings already in the report set, not a forecast of future filing activity.

4,078

state-level exclusion records

2,202 supporting filings, combined by carrier or program, form, and state.

2,369
in force by July 31
reviewed filing evidence supports current use
1,117
scheduled after July 31
filed with a later effective date
222
pending filings
filed but not yet approved or effective
370
filed; timing not established
carrier action is proven, but effective timing is not
2,202
supporting carrier filings
July 2025 through July 2026 report set
50
jurisdictions
49 states plus the District of Columbia
287
carrier or program labels
source-reviewed public identities
95
distinct exclusion forms
standard and carrier-written forms
3,955
records in common business lines
coverage lines contractors and small businesses commonly buy
403
records backed by multiple filings
duplicate filing relationships combined

The exclusion is on general liability, the coverage every contract requires

General liability is the policy many contracts require a contractor to carry. The report contains 1,415 general liability records, 1,849 commercial umbrella and excess records, and 636 commercial package records. In total, 3,955 of the 4,078 records involve coverage lines contractors and small businesses commonly buy. Six standard forms carry the exclusion across primary, umbrella, and excess coverage.

State-level records by coverage line

Carrier or program × form × state records by coverage line. A record tied to more than one coverage line appears in each relevant line.

Commercial umbrella and excess1,849Commercial general liability1,415Commercial package636Farm and ranch74Errors and omissions46Other commercial lines45Businessowners38Directors and officers26Commercial auto11Medical professional11Business auto3Employment practices1Personal lines1

Trades Coverage analysis of public SERFF filing metadata and filed form evidence through July 31, 2026.

Three versions of the exclusion, each removing a different type of claim

The six standard ISO forms share one trigger: a claim that arises out of generative AI. They differ in what they take away. Carriers also filed their own forms and variations. Each example below shows the kind of claim a standard version would exclude.

Full liability

Removes bodily injury, property damage, and advertising injury claims. The broadest version, and it applies to the umbrella and excess layers too.

CG 40 47, CU 34 69, CX 34 12
“Excludes coverage for bodily injury, property damage and personal and advertising injury arising out of generative artificial intelligence.”

Claim example

A contractor uses an AI takeoff or design tool to spec a job. A miscalculation contributes to a structural failure that injures someone. The carrier could deny the injury claim as arising out of generative AI. Because the umbrella and excess carry the same exclusion, there would be no coverage above the primary limit either.

Advertising injury only

Removes claims tied to your advertising and marketing.

CG 40 48, CU 34 70
“Excludes coverage for personal and advertising injury arising out of generative artificial intelligence.”

Claim example

A business uses a generative AI tool to build a marketing campaign. The output copies a competitor's protected work or defames someone. The carrier could deny the advertising-injury claim, which a policy would normally cover under Coverage B.

Completed operations

Removes injury and property damage claims from finished work that AI helped build.

CG 35 08
“Excludes coverage for bodily injury and property damage arising out of generative artificial intelligence.”

Claim example

A contractor closes out a project that used AI-assisted design. Months later the finished work fails and damages property. The carrier could deny the completed-operations claim because AI contributed to the work. That is the coverage a contractor relies on most after a job ends.

The quoted language is from the carriers' own filing descriptions. Which version applies to a given policy is the carrier's attachment decision.

The six standard generative AI forms
Form code
CG 40 47
Plain-English label
General liability exclusion for AI-related injury, property damage, and advertising claims. If a claim is tied to generative AI, the carrier can argue the policy does not cover it.
State-level records
529
Jurisdictions
46
Form code
CU 34 69
Plain-English label
Umbrella exclusion for AI-related injury, property damage, and advertising claims. It can remove backup coverage above the primary general liability policy.
State-level records
446
Jurisdictions
44
Form code
CG 40 48
Plain-English label
General liability exclusion for AI-related advertising claims only. This includes marketing, copyright, defamation, and similar claims tied to AI-generated content.
State-level records
355
Jurisdictions
43
Form code
CG 35 08
Plain-English label
Finished-work exclusion for AI-related injury or property damage after the job is done. If AI helped create the work and the finished job later causes injury or damage, the carrier can deny that claim.
State-level records
350
Jurisdictions
43
Form code
CU 34 70
Plain-English label
Umbrella exclusion for AI-related advertising claims only. It can remove umbrella coverage above the primary policy for AI-related marketing or advertising claims.
State-level records
344
Jurisdictions
44
Form code
CX 34 12
Plain-English label
Excess liability exclusion for AI-related claims above the primary policy. If the primary policy is exhausted, the excess layer can still exclude the AI-related claim.
State-level records
313
Jurisdictions
44
Counts are state-level carrier/form records for the six standard ISO forms. The full dataset also includes carrier-written forms.

National Union has the most state-level records

National Union Fire Insurance Company of Pittsburgh, Pa. accounts for 313 state-level records across 40 jurisdictions, more than any other carrier or program label. The same standard and carrier-written forms also appear across many other insurers.

Carriers and programs by state-level record count
Carrier or program
National Union Fire Insurance Company of Pittsburgh, Pa.
State-level records
313
Jurisdictions
40 jurisdictions
Carrier or program
Allianz Global Risks US Insurance Company
State-level records
234
Jurisdictions
39 jurisdictions
Carrier or program
Atlantic Specialty Insurance Company
State-level records
200
Jurisdictions
40 jurisdictions
Carrier or program
Star Insurance Company
State-level records
152
Jurisdictions
40 jurisdictions
Carrier or program
XL Insurance America, Inc.
State-level records
146
Jurisdictions
39 jurisdictions
Carrier or program
Accident Fund Insurance Company of America / United Wisconsin Insurance Company
State-level records
96
Jurisdictions
24 jurisdictions
Carrier or program
Great American Insurance Group
State-level records
87
Jurisdictions
40 jurisdictions
Carrier or program
AF Group
State-level records
76
Jurisdictions
20 jurisdictions
Carrier and program labels were reviewed against the filing packet. The downloadable workbook retains the legal filing companies and supporting tracking numbers.

The filings reach 49 states and the District of Columbia

Minnesota is the only state without a counted record. Wisconsin has 150 state-level records, New Mexico has 147, and Wyoming has 145. The table ranks the busiest jurisdictions. A high count reflects filing patterns and the number of carriers and forms in a jurisdiction. It does not show how many policies or businesses are affected.

Top jurisdictions by state-level record count
State
WI
State-level records
150
Carrier or program labels
47
In force by July 31
83
Scheduled later
67
Pending or timing unknown
0
State
NM
State-level records
147
Carrier or program labels
53
In force by July 31
91
Scheduled later
44
Pending or timing unknown
12
State
WY
State-level records
145
Carrier or program labels
49
In force by July 31
80
Scheduled later
31
Pending or timing unknown
34
State
FL
State-level records
144
Carrier or program labels
46
In force by July 31
82
Scheduled later
54
Pending or timing unknown
8
State
CT
State-level records
136
Carrier or program labels
46
In force by July 31
61
Scheduled later
50
Pending or timing unknown
25
State
NC
State-level records
129
Carrier or program labels
41
In force by July 31
89
Scheduled later
29
Pending or timing unknown
11
State
MD
State-level records
127
Carrier or program labels
51
In force by July 31
62
Scheduled later
40
Pending or timing unknown
25
State
GA
State-level records
121
Carrier or program labels
43
In force by July 31
39
Scheduled later
60
Pending or timing unknown
22
State
IL
State-level records
120
Carrier or program labels
49
In force by July 31
77
Scheduled later
37
Pending or timing unknown
6
State
TN
State-level records
110
Carrier or program labels
40
In force by July 31
62
Scheduled later
22
Pending or timing unknown
26
State
AL
State-level records
109
Carrier or program labels
42
In force by July 31
41
Scheduled later
23
Pending or timing unknown
45
State
MA
State-level records
107
Carrier or program labels
39
In force by July 31
73
Scheduled later
34
Pending or timing unknown
0
Trades Coverage analysis of public SERFF filing metadata and filed form evidence through July 31, 2026.

Unlike cyber, there's nowhere to buy the coverage back yet

In 2020, ISO used a similar exclusion to pull cyber risk out of standard commercial policies. Businesses that still wanted the coverage could buy standalone cyber insurance. The generative AI exclusions follow the same pattern, but the reviewed filing set does not identify an admitted standalone product that replaces the excluded coverage for contractors. The gap also reaches physical work. An AI-assisted measurement or design can contribute to a collapse or defect, not only a data or advertising claim.

Check your policy before you need it

Large construction companies keep risk managers to read filings like these. At a small business using AI for takeoffs, measurements, or bids, that job falls to the owner. The exclusion was in force in 2,369 state-level records by July 31, and 1,117 are scheduled for later dates. Filing activity does not prove that an endorsement was attached to any particular policy. Read your own policy, or ask your agent whether one of these endorsements is on it.

4,078

state-level records

carrier or program × form × state

2,202

supporting filings

July 2025 through July 2026

50

jurisdictions

49 states plus DC

Methodology and limits

This report measures carrier filing activity through July 31, 2026. Its main dataset contains one record for each carrier or program, generative AI exclusion form, and state. Each record must prove both a real exclusion and a carrier filing action. Multiple supporting filings are combined. The result is not a count of policies, policyholders, insured businesses, claims, or claim denials.

A filing is a carrier's request to a state regulator to use an exclusion. The main dataset combines those submissions into one record for each carrier or program, exclusion form, and state.

Pending filings count because they show that a carrier filed the exclusion. They are kept separate from records that were in force or scheduled for a known later date.

Every included record must prove both a real generative AI exclusion and a carrier filing action. Bureau publications, generic AI questions, unrelated exclusions, and rejected or withdrawn filings are excluded.

How the data was counted

Source
Public SERFF filing metadata and filing text through July 31, 2026.
Search method
Verified form identities, operative exclusion wording, full filing packets, exact duplicates, and related filing families.
Verified forms
CG 40 47, CG 40 48, CG 35 08, CU 34 69, CU 34 70, and CX 34 12.
Lines counted
Business liability, commercial auto, and farm and ranch.
Count type
One carrier or program × exclusion form × state. Supporting filings are retained as evidence.
These counts measure state-level filing records, not policies, policyholders, insured businesses, claims, or claim denials.
A carrier filing shows an action to seek or establish use of a form. It does not prove that the form was attached to a particular issued policy.
The report set covers admitted-market public SERFF filings and Florida I-File records. Non-admitted surplus-lines filings sit outside it.
The counted records cover 49 states and the District of Columbia. Minnesota has no counted record in this report window.
Coverage-line data supports contractor and small-business relevance. Naming specific trades would require reading each filing case by case.
Carrier and program labels are source-reviewed for public display. The legal filing companies and all supporting tracking numbers remain in the downloadable workbook.
The report separates 2,369 records that were in force, 1,117 scheduled records, 222 pending filings, and 370 filed records whose effective timing was not established.
Bureau-only publications, generic AI questions, unrelated exclusions, rejected or withdrawn filings, and filings without proven carrier action are excluded.

Last updated: August 17, 2026