If you are placing a client that relies heavily on automated systems, software, or artificial intelligence to manage operations, you need to stop treating AI as a 'general liability' concern and start treating it as a potential gap in your Workers' Comp coverage. Carriers are already moving to wall off this risk.
In my role as National Workers' Comp Product Manager, I’ve seen carriers tighten language around automated systems—agents who ask the right questions now avoid costly gaps later.
The Shift Toward AI Exclusions
The industry is hitting a turning point. While much of the conversation around AI focuses on cyber liability or professional errors, the intersection with Workers' Comp is becoming an unavoidable battlefield. According to Insurance Journal, insurer interest in specific AI exclusions is growing rapidly because the associated risks are becoming 'omnipresent.'
As businesses integrate AI into everything from warehouse robotics to automated scheduling and decision-making software, the potential for new types of claims rises. Whether it is a robotic malfunction causing physical injury or an algorithmic error leading to systemic workplace safety failures, the legal and financial exposure is evolving faster than standard policy forms.
What Changes for Agents
This isn't a problem for the future; it's a problem for your next renewal or new business submission. You cannot assume that a standard Workers' Comp policy provides seamless coverage for accidents involving AI-driven technology. Here is how you need to adjust your workflow:
- Identify AI Exposure: Look closely at your clients' operations. If they use autonomous vehicles, automated sorting systems, or AI-driven monitoring software that influences physical safety, they are in the crosshairs of these new exclusions.
- Interrogate the Policy Language: Do not just read the 'Exclusions' section for standard items like intentional acts or illegal acts. Look for broad language regarding 'automated systems,' 'algorithmic decision-making,' or 'artificial intelligence.'
- Ask the Underwriter Directly: Don't wait for the quote to reveal the gap. When submitting a risk that is highly automated, ask: "Does this carrier have any emerging tech or AI-related exclusions that would impact a claim involving an automated system?"
- Document the Disclosure: If an underwriter confirms that AI-related injuries are excluded, you must document that this limitation was disclosed to the client. In an era of tightening margins and rising complexity, 'I didn't know' is not a defense for an agent when a client's automated equipment causes an injury that the carrier denies.
What this means for your placements
As carriers attempt to protect their loss ratios against unpredictable tech-driven losses, the standard policy is becoming a myth for sophisticated accounts. You will likely see more restrictive language in renewals for manufacturing, logistics, and tech-forward service industries. If you aren't proactively addressing these exclusions, you are effectively leaving your clients with an uninsurable gap.
Prepare your clients for the reality that the more they automate, the more scrutinized their Workers' Comp coverage will become. Your value in this market isn't just finding a price; it's identifying these technical gaps before they become multi-million dollar claims.
Sources
- Insurance Journal (2026-07-22T05:36:11)
- Risk & Insurance (2026-07-20T14:11:33)
Tags: AI Risk, Carrier Trends, Underwriting