Heads up contractors: if you use generative A.I. in any of your project work and something on the job goes wrong, your insurance policy may not cover the claim.

In nearly every state, insurance companies have filed for the option to include generative A.I. exclusions for several kinds of ordinary liability policies, according to the report, “The A.I. exclusion hiding in your contractor insurance,” by Trades Coverage.

These forms are optional endorsements unless a carrier’s program rules require them. The filings do not show whether a carrier attached an exclusion to an issued policy. Some insurers may be holding off now until data from future claims shows there’s a need, and the filings with state insurance regulators give them an option to subsequently add exclusions to policies.

“A contractor might use A.I. to prepare an estimate, compare plans, diagnose equipment or draft marketing copy, then complete the physical work by hand,” according to the report. “If that A.I.-assisted step contributes to an injury, property damage, an advertising claim, or a problem discovered after the work is finished, the exclusion may give the carrier a basis to deny coverage.”

The state filings began in August 2025, a month after the Insurance Services Office (ISO), which develops standard insurance policy forms, published six generative A.I. exclusion forms. As July 31, 2026, there were 4,078 filed form adoptions across 49 states and the District of Columbia with generative A.I. exclusions. Each adoption represents one carrier or program filing one generative A.I. exclusion form for use in one state.

Most exclusions are on general liability policies, which is the primary coverage contractors carry. Over the reported time period, there were 1,415 general liability adoptions, 1,849 commercial umbrella and excess adoptions, and 636 commercial package adoptions. In total, 3,955 of the 4,078 adoptions involve coverage line contractors and small businesses commonly buy.

Unlike cybersecurity risk, there’s nowhere to buy the coverage back yet, the report said.

“In 2020, ISO used a similar exclusion to pull cyber risk out of standard commercial policies,” according to the report. “Businesses that still wanted the coverage could buy standalone cyber insurance. The reviewed filing set does not identify an admitted standalone generative A.I. product that replaces the excluded coverage for contractors.”

Trade Coverage cautions contractors to check their policies now, as by July 31, 2,369 records had reached their filed effective dates, and 1,117 were scheduled for later dates.

“Large construction companies can afford to hire risk managers to read filings like these,” the authors wrote. “At a small business using A.I. for takeoffs, measurements or bids, that job falls on the owner. Read your own policy, or ask your agent whether one of these endorsements is on it.”