Subject: Re: AI Tarpits
" Chubb, and Travelers have secured approval from U.S. state regulators to exclude generative AI-related damages from some corporate insurance policies."

Thanks for the above tidbit. I own both of those insurer's stock.
Might be of interest:
https://insuranceintel.substac...

Carriers are actively excluding AI liabilities from their standard products. Since January 1, 2026, Verisk/ISO exclusion endorsements have allowed carriers to remove generative AI exposure from commercial general liability policies, and at least six major carriers have filed their own AI exclusions with state regulators. GenAI lawsuits in the U.S. grew 137% year over year in 2024 to 2025, with cumulative filings past 700. The liability is real, it is accelerating, and it is flowing to the enterprise deployer because every major AI vendor caps its own exposure at 12 months of fees. The same MGA model that Chubb’s CEO publicly argued AI will replace is now the model underwriting the AI liability class that Chubb’s standard products cannot cover.

The structural driver making this an insurance problem rather than a legal problem is vendor contract design. All four major AI vendors, OpenAI, Anthropic, Google, and Microsoft, cap their liability at 12 months of fees paid and disclaim all consequential damages. No vendor offers performance warranties under standard terms.

So a new liability class. Seems like insurers are running fast to avoid the exposure. Will the federal government step up?