What does the generative AI exclusion CG 40 47 remove from a contractor’s policy?

What are the three forms?

How does the form define generative AI?

All three share one definition: a machine-based learning system or model that is trained on data and can create content or responses, including text, images, audio, video or code. None of the three has an exception or carve-back.

Why does this matter to a trade contractor?

The phrase “arising out of” is read broadly in insurance policies. Commissioning scripts, controls sequences, estimating take-offs and submittal reviews are increasingly drafted with AI tools. If a loss is traced back to output from one of those tools, an insurer with CG 40 47 on the policy has an argument that the claim is excluded, whether or not a person checked the work.

There is a second, contractual problem. Many subcontracts say the contractor’s coverage must contain no non-standard exclusions. Whether an optional ISO exclusion breaches that clause is a question for the owner’s side, and it is better asked before a claim than after.

Where do I look on my renewal?

• The forms schedule of the renewal quote or policy, for any of the three form numbers.
• Your umbrella or excess policy, which may carry its own AI exclusion or simply follow the primary policy.
• Your professional liability policy, if you have one, since design and controls advice may fit there better.
• The insurance exhibit in your subcontracts, for wording about non-standard exclusions.

Which insurers have adopted it?

That is not publicly settled. Verisk announced the forms in October 2025 as optional endorsements. State filings are the reliable way to see which insurers have filed them and where; secondary reports of adoption should be treated with care.

Related questions

Is CG 40 47 mandatory?

No. It is an optional ISO endorsement. An insurer chooses whether to attach it, so two contractors with the same base policy can have different answers.

Does human review of AI output avoid the exclusion?

Not by the wording. The form excludes loss arising out of generative AI and contains no exception for human review.