Rapid adoption of artificial intelligence is creating new questions about coverage under General Liability, E&O, Cyber and Management Liability policies
NEW YORK, Oct. 21, 2026 /PRNewswire/ — Bruce Gendelman Insurance is urging businesses to review their insurance programs as insurers begin addressing artificial intelligence through new exclusions, policy language and specialized AI coverage.
Artificial intelligence has quickly become part of everyday business operations. Companies are using AI for customer communications, marketing, contracts, research, financial analysis, professional services and decision-making.
But insurance policies have not necessarily evolved at the same pace.
“Most business owners I speak with are focused on what AI can do for their company—not whether their insurance will respond if something goes wrong,” said Joe Gendelman, President and CEO of Bruce Gendelman Insurance. “That’s the conversation businesses need to start having now.”
The insurance industry is already responding. New AI-specific exclusions are becoming available for commercial liability policies, individual insurers have introduced their own AI-related exclusions, and specialized AI liability products are entering the market.
At the same time, some insurers are affirmatively extending coverage for certain AI exposures, creating a rapidly evolving insurance landscape.
AI-related incidents could potentially implicate multiple insurance policies depending on the circumstances, including General Liability, Errors & Omissions, Cyber and Management Liability.
Bruce Gendelman Insurance recommends businesses ask four questions:
- Where is our company currently using AI?
- Are we using AI for customer communications, contracts, financial information or professional advice?
- Are we relying on AI-generated information to make decisions or provide services?
- What human review occurs before AI-generated information is used?
“We’re not suggesting every company needs to go out and purchase another insurance policy,” Gendelman said. “First, understand your AI exposure. Then look carefully at your existing policies and determine what is covered, what is excluded and where there may be uncertainty.”
Bruce Gendelman Insurance has introduced an AI Insurance Exposure Review to help businesses evaluate their AI usage alongside existing insurance coverage and determine whether coverage gaps or limitations warrant attention.
Gendelman sees parallels with the early development of cyber insurance.
“Twenty years ago, cyber wasn’t viewed as a separate insurance exposure by most businesses,” Gendelman said. “Today it’s a fundamental part of many insurance programs. AI could be at the beginning of a similar evolution, but it’s happening much faster.”
His advice to businesses is simple:
“Don’t wait for an AI-related claim to find out whether you’re covered.”
About Bruce Gendelman Insurance
Bruce Gendelman Insurance is a privately owned, family-run independent insurance agency serving commercial and personal clients with exposures throughout the United States and overseas.
For more information or to inquire about an AI Insurance Exposure Review, visit Gendelman.com or call 800-845-4145.
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SOURCE Bruce Gendelman Insurance
