--- title: "Chubb, Travelers and Berkshire are dropping AI coverage; Corgi's $5 billion startup prices the risk" description: "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." publisher: "The Inference" section: "Economy" published: 2026-10-24T13:32:02.201Z modified: 2026-10-24T13:32:02.201Z canonical: https://theinference.org/article/chubb-travelers-and-berkshire-are-dropping-ai-coverage-corgi-s-5-billion-startup-prices-the-risk language: en keywords: "Insurance, AI Risk, Cyber Insurance, Startups, Litigation" --- # 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. 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](https://theinference.org/markets/companies/chubb-limited), Travelers, [Berkshire Hathaway](https://theinference.org/markets/companies/berkshire-hathaway), 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](https://www.darkreading.com/cyber-risk/cyber-insurance-covering-ai-damage) [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 [1][2]. ## 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](https://www.insurancejournal.com/magazines/mag-features/2026/08/17/881424.htm), and 137% from 2024 to 2025 [2]. *Chart: **AI litigation clusters on IP and personal-injury claims, the very lines the exclusions touch** Pie chart showing the leading categories of AI-related litigation: patent infringement 11.9%, copyright infringement 11.2%, personal injury 10.2%, all other claims about 66.7%.* *Share of AI-related lawsuits by claim type, Gallagher study reported by Insurance Journal, August 2026. Remaining share is other claim types including privacy, discrimination and securities claims. [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](https://theinference.org/markets/companies/corgi-insurance), [now valued at $5 billion after raising $266 million this year and $431 million in total](https://www.businessinsider.com/corgi-hiring-investment-banker-no-base-salary-2026-10) [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 [3][4]. *Chart: **Corgi's valuation nearly quadrupled in six months** Column chart of Corgi's reported valuation: $1.3 billion in April 2026, $2.6 billion in May 2026, $5 billion in October 2026.* *Reported valuation of Corgi: $1.3 billion Series B in late April and $2.6 billion Series B1 in May per Forbes, $5 billion per Business Insider in October 2026. [3][4]* Its age is the one number the record cannot settle: [Forbes calls it a two-year-old startup](https://www.forbes.com/sites/richardnieva/2026/05/28/corgi-doubles-valuation/) [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 [4][3]; [the two sources disagree](https://theinference.org/article/corgi-s-5-billion-valuation-rests-on-two-unnamed-sources), 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](https://theinference.org/article/an-unrated-two-year-old-insurer-just-put-its-name-on-used-gpu-risk) is also expanding into ETFs, cafes and now dealmaking on money that is not its own. ## Takeaway Five giant carriers are stripping generative-AI cover from commercial policies before December 31 renewals; buyers who assume silent coverage will find six specialist writers, led by a $5 billion AI-native startup, holding the tail instead. ## Sources 1. [Dark Reading, As AI Risks Grow, Insurers Split on Covering the Damage, 22 October 2026](https://www.darkreading.com/cyber-risk/cyber-insurance-covering-ai-damage) 2. [Insurance Journal, Insurer Interest in AI Coverage Exclusions Growing as Risk Becomes Omnipresent, 17 August 2026](https://www.insurancejournal.com/magazines/mag-features/2026/08/17/881424.htm) 3. [Business Insider, Corgi is hiring an investment banker with no base salary, 23 October 2026](https://www.businessinsider.com/corgi-hiring-investment-banker-no-base-salary-2026-10) 4. [Forbes, AI Insurance Startup Corgi Doubles Valuation To $2.6 Billion In Weeks, 28 May 2026](https://www.forbes.com/sites/richardnieva/2026/05/28/corgi-doubles-valuation/) --- Chubb, Travelers and Berkshire are dropping AI coverage; Corgi's $5 billion startup prices the risk — The Inference. Canonical: https://theinference.org/article/chubb-travelers-and-berkshire-are-dropping-ai-coverage-corgi-s-5-billion-startup-prices-the-risk