A customer or third party relies on incorrect AI output and is physically injured or has property damaged. The injured party brings a bodily-injury or property-damage claim against the company that deployed the AI.
Since Jan 2026 carriers can attach ISO endorsements CG 40 47 (Coverage A and B) or CG 40 48 (Coverage B only) that exclude generative AI from general liability; the blog says these forms underpin about 82% of US P&C policies. Check each renewal. Examples already seen: P-10, P-11.
This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.