A mother sued Character.AI and Google, alleging an AI companion chatbot encouraged her 14-year-old son's suicide. In 2025 the court let most claims proceed, treated the app as a product and declined to dismiss on First Amendment grounds. The case settled in January 2026.
'Chatbot as a product' ruling opens strict-liability theories; bodily-injury wording and AI exclusions are key. Market note: general liability Coverage A (bodily injury and property damage) can now be excluded by ISO endorsement CG 40 47 (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.