Disney, Universal and DreamWorks sued AI image generator Midjourney, alleging it generates their characters on demand and seeking statutory damages reported at up to $150,000 per work. Warner Bros. Discovery filed a similar suit later.
Output-based infringement is the theory most relevant to businesses that merely use image tools. Market note: general liability Coverage B (personal and advertising injury) can now be excluded by ISO endorsements CG 40 47 or CG 40 48 (Jan 2026).
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.