Chubb, Travelers and Berkshire are dropping AI coverage; Corgi's $5 billion startup prices the risk
Five giant carriers are stripping generative-AI cover from commercial policies before December 31 renewals, while six specialists, led by Corgi, a $5 billion AI-native insurer now hiring commission-only bankers, sell the risk the giants refuse to touch.
Vincent Jiang · 3 min read
When a rogue AI agent wipes a customer's database, who pays? For a growing bloc of the insurance industry, the answer is: not us. Chubb−2.43% — Chubb, down 2.43 percent today, Travelers, Berkshire Hathaway−0.85% — Berkshire Hathaway, down 0.85 percent today, AIG and W.R. Berkley are adopting Verisk/ISO exclusion endorsements that strip commercial general liability policies of bodily-injury, property-damage and personal-injury cover arising from generative AI 1. The endorsements carry dry numbers, CG 40 47 and CG 40 48 among them, and they landed just as policies renew on December 31 12.
The giants walk away, the specialists step in
On the other side of the split sit six specialist writers selling affirmative AI cover: Armilla, Coalition, Corgi Insurance, Cowbell, Munich Re and Beazley 1. Beazley's application alone runs dozens of questions across roughly 15 security controls, and it sells what it calls AI voluntary shutdown coverage 1.
Many buyers wrongly assume their legacy errors-and-omissions, D&O or general liability policies already cover AI outputs; attorney Alana McMullin calls what those policies hold "silent coverage," protection that exists only because nothing explicitly excludes it 2. The lawsuits are already arriving: a Gallagher study counts a 978% rise in AI-related suits from 2021 to 2025, and 137% from 2024 to 2025 2.
AI litigation clusters on IP and personal-injury claims, the very lines the exclusions touch
- Other claims66.766.7%
- Patent infringement11.911.9%
- Copyright infringement11.211.2%
- Personal injury10.210.2%
Data
| Slice | Value | Share |
|---|---|---|
| Other claims | 66.7 | 66.7% |
| Patent infringement | 11.9 | 11.9% |
| Copyright infringement | 11.2 | 11.2% |
| Personal injury | 10.2 | 10.2% |
The direction of travel points toward the excluders, though not by certainty. Verisk's Joe Lam, who helped write the endorsements, says exclusions give underwriters "a level of stability to accept a risk," and McMullin expects "rapid adoption of some version of an AI exclusion in most lines" 2. Yet McMullin also warns that carriers may go the other way, choosing to underwrite and price AI risk for extra premium rather than exclude it 2.
The startup holding the AI tail is spending its attention elsewhere
Then there is Corgi, the AI-native insurer for startups, now valued at $5 billion after raising $266 million this year and $431 million in total 3. Corgi writes AI risk the giants refuse, and it prices that risk with the same machinery: AI generates the quotes and manages the claims 34.
Corgi's valuation nearly quadrupled in six months
Data
| Reported valuation | |
|---|---|
| Apr 2026 | $1.3B |
| May 2026 | $2.6B |
| Oct 2026 | $5B |
Its age is the one number the record cannot settle: Forbes calls it a two-year-old startup 4, while Business Insider says $431 million has been raised "since its 2014 launch" 3. Forbes profiles founders Nico Laqua and Emily Yuan building it from 2024 43; the two sources disagree, and the valuation chart above rests only on figures each states plainly.
Dealmaking on money that is not its own
This month Corgi posted a commission-only Managing Director, Investment Banking job: no base salary, in a role where industry medians ran $1.1 million in 2025, and payouts tied only to collected transaction fees 3. The listing asks for relationships with "founders, sponsors, and referral partners," the people who connect startup sellers with private-equity buyers 3.
The cover camp takes the premium the giants left on the table. The watch items are concrete: whether the year-end renewals show the exclusions spreading, and whether Corgi's affirmative AI premiums reprice once claims arrive. A carrier willingly holding the AI tail is also expanding into ETFs, cafes and now dealmaking on money that is not its own.
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