AI exclusions are not appearing in architect PI policies yet, insurers say

Many principals spent the past year half-expecting an insurer letter rewriting their professional liability terms. It has not come. AXA XL's chief underwriting officer told Engineering News-Record the firm is not applying AI exclusions to architect and engineer policies, and no major insurer appears to have done so for design professionals. The policy forms, in AXA XL's words, are "agnostic as to how the matter occurs." The Insurance Services Office has flagged AI exclusions beginning to appear on commercial general liability policies, and broker Arthur J. Gallagher warns those gaps can affect claim outcomes, contract compliance, and bid eligibility with public owners. Law firm Shumaker expects dedicated AI endorsements to gradually replace the tacit coverage now sitting inside existing cyber and E&O policies. Your broker does not know how your staff is using AI unless you tell them.