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- The News: As of May 8, 2026, major carriers including Berkshire Hathaway, Chubb, and Travelers have received regulatory approval in over 80% of states to exclude AI-related damages from standard Commercial General Liability (CGL) policies.
- The Risk: If your LLC’s chatbot gives medical advice, leaks data, or discriminates in hiring, your standard policy will likely deny the claim.
- The Shark Insight: “In 2026, ‘General Liability’ no longer means ‘Total Liability.’ Carriers are treating AI like they treated asbestos in the 80s—as a toxic risk to be excluded. You must secure a specific ‘Affirmative AI Rider’ immediately, or a single ‘hallucination’ from your customer service bot could bankrupt your entity.”
