GENERATIVE AI BODILY INJURY & PROPERTY DAMAGE INSURANCE
Most AI exposure is financial or reputational. This one is physical. When an AI-driven decision, instruction, or autonomous action reaches into the real world — and someone is hurt or something is destroyed — the loss is no longer just data on a screen.
WHEN A DIGITAL DECISION CROSSES INTO THE PHYSICAL WORLD
As AI moves from drafting text to driving operations — controlling machinery, advising on physical processes, dispatching crews, running building systems — its mistakes stop being abstract. This coverage part answers two of the oldest allegations in insurance, now triggered by a new cause.
SOMEONE GETS HURT
An AI-driven instruction, recommendation, or autonomous action contributes to a real-world event that physically injures a person — an employee, a customer, or a bystander. The harm is bodily, and the cause traces back to the AI.
SOMETHING GETS DESTROYED
An AI-driven action damages physical property — equipment, inventory, a facility, or a third party's belongings. A wrong instruction with a physical output becomes a wrong, costly, real-world result.
BODILY INJURY, PROPERTY DAMAGE, OR BOTH?
Read each incident and call the trigger. The same AI mistake can land as one, the other, or both at once — see how it breaks down.
THE POLICY THAT NORMALLY PAYS FOR THIS IS THE ONE BEING CARVED OUT
Bodily injury and property damage are the home turf of the standard general liability policy — its Coverage A. That is exactly the coverage the new AI endorsement targets.
EXCLUDES COVERAGE A
Effective January 1, 2026, this ISO endorsement lets carriers exclude generative AI from bodily injury and property damage under Coverage A — the precise grant that would normally answer a physical AI loss.
OLD FORMS, NEW TRIGGER
General liability was written for physical harm caused the ordinary way. An injury or loss caused by an AI decision is a cause those forms never contemplated — and now may expressly exclude.
WRITTEN FOR AI-CAUSED HARM
A standalone policy can affirmatively cover bodily injury and property damage arising from generative AI — defense and damages — rather than leaving it to a GL form that may carve AI out.
WHERE AI REACHES INTO THE REAL WORLD
Pick an operation. See how a digital AI error becomes a physical loss — and which triggers light up when it does.
WHERE THE PHYSICAL EXPOSURE LIVES
If AI touches anything that moves, builds, controls, or directs in the physical world, this trigger is in play. Map where a digital decision can produce a physical result.
MANUFACTURING & ROBOTICS
AI that controls or optimizes machinery, production lines, or robotic equipment where a wrong instruction has a physical result.
SAFETY & ENGINEERING ADVICE
AI used to advise on maintenance, inspections, structural, or safety decisions that people then act on in the real world.
LOGISTICS & FLEET
AI that routes vehicles, schedules crews, or directs field operations, where a bad call puts people or property in harm's way.
BUILDING & FACILITY CONTROLS
AI managing power, HVAC, access, or environmental systems where a fault can damage property or endanger occupants.
FIELD & EVENT OPERATIONS
AI-driven planning or control of physical events, installations, and on-site work involving crowds, rigging, or equipment.
AUTONOMOUS EQUIPMENT
Agentic systems that physically operate machines or vehicles on their own, with no human approving each action.
⚡ AGENTIC = INSTANT YESBUILT FOR ESTABLISHED BUSINESSES WITH PHYSICAL OPERATIONS
This affirmative market is designed for companies at scale where AI now touches the physical world — and where a single AI-driven incident can mean a real injury or a real loss.
PART OF THE GENERATIVE AI INSURANCE STACK
Bodily injury and property damage is one trigger. Explore how it connects to the rest of the cluster.
BODILY INJURY & PROPERTY DAMAGE QUESTIONS
CAN GENERATIVE AI REALLY CAUSE BODILY INJURY OR PROPERTY DAMAGE?
DOESN'T MY GENERAL LIABILITY POLICY COVER BODILY INJURY AND PROPERTY DAMAGE?
WHAT IF THE AI ONLY ADVISED, AND A PERSON ACTED ON IT?
WE RUN AUTONOMOUS EQUIPMENT. IS THAT HIGHER RISK?
IS THERE A MINIMUM COMPANY SIZE FOR THIS COVERAGE?
HOW DO I GET A QUOTE FROM KELLY INSURANCE GROUP?
FIND RELATED COVERAGE FAST
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