New Trades Coverage Data Shows Rapid Adoption of AI Exclusions in Business Liability Insurance
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.
