The corporate safety net for AI is collapsing as insurers exclude coverage and courts expand liability

Enterprises face severe, unhedged operational risk as the commercial insurance market systematically excludes artificial intelligence from standard corporate policies. Following landmark court rulings denying "silent AI" coverage under standard General Liability and D&O templates, major insurers are aggressively filing explicit AI exclusions. With courts and regulators simultaneously expanding liability for algorithmic harms and automated decision-making, companies can no longer rely on traditional risk-transfer mechanisms, forcing them to assume direct balance-sheet exposure.