Berkley’s “absolute” AI exclusion for D&O, EPL, and fiduciary lines.

What it does

Where the ISO forms carve AI out of specific CGL coverage parts, this one takes the ceiling off: “absolute” exclusions reach anything based upon, arising out of, or in any way involving AI — including decisions your leadership made about AI. Under a form like this, a shareholder suit alleging your board mismanaged AI adoption, or an employment claim involving an AI screening tool, can fall outside the management-liability tower entirely.

What that can mean for a business like yours

• Shareholders allege the company overstated its AI capabilities — a D&O claim squarely in the exclusion’s path.
• A hiring-discrimination claim involves an AI resume screener — EPL coverage can be excluded.
• The board is accused of inadequate AI governance — the exclusion names that scenario almost verbatim.

How to spot it

Management-liability policies list endorsements on the declarations or a schedule of forms. Look for “PC 51380” or any endorsement titled “Artificial Intelligence Exclusion” — and note the word absolute. Other carriers are filing similar forms; the wording pattern to watch is “based upon, arising out of, or in any way involving.”

Search your renewal PDF for:

Found it? It isn’t automatically the end.

An exclusion on a renewal is a negotiation point, not a verdict. Get your broker’s answers in writing:

Subject: Written confirmation on the AI endorsement on our renewal

Hi [Broker name],

Our renewal includes endorsement PC 51380. Before we bind, could you confirm in writing:

1. The exact form and edition attached to our policy, with a copy of the endorsement text;
2. What in our operations it applies to, with an example claim scenario;
3. Whether it can be removed, narrowed, or bought back — and at what cost;
4. Whether any market you work with offers this line without the exclusion.

We want the answers on record before signing. Thanks!

[Name], [Company]

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