Major insurance carriers are adding AI exclusions to professional liability policies for architects and engineers. With Verisk's standardized exclusion forms now in effect, design professionals face potential coverage gaps when using AI tools like ChatGPT and Midjourney in project work.
-- HOUSTON, TX (January 16, 2026) — A significant shift in the professional liability insurance market is creating potential coverage gaps for architecture and engineering firms using artificial intelligence tools. Major carriers including Berkley, AIG, and Great American are filing for regulatory approval to exclude AI-related liabilities from professional liability (E&O) policies, leaving design professionals with critical questions about risk exposure.
The changes follow Verisk's release of standardized AI exclusion forms CG 40 47 and CG 40 48, which became effective January 1, 2026. These forms provide insurers with ready-made language to exclude losses arising from generative AI use, including specific tools like ChatGPT, Midjourney, and DALL-E.
"Nowadays it's all about transferring risk," said Travis Landers, ARM, President and Founder of Risk Specialty Group. "Project managers want to transfer as much risk as possible to design professionals. The difference now is that AI creates liability exposures that traditional policies weren't designed to address. Firms renewing policies this quarter need to review the new language carefully."
The insurance industry's caution stems from documented AI reliability issues. Stanford Law School research indicates general-purpose AI tools produce inaccurate outputs—known as hallucinations—at rates between 58% and 88%. Even specialized "legal-grade" AI tools show error rates of 20-33%.
The real-world consequences are already visible. In the Mata v. Avianca case, a lawyer was sanctioned for citing fake cases generated by ChatGPT—the cases simply did not exist. For design professionals, similar errors could translate to structural recommendations that violate building codes, specifications for nonexistent materials, or calculations that fail engineering standards.
American Institute of Architects research from March 2025 reveals one-third of architecture firms now incorporate AI tools in daily operations. Large firms lead adoption at 61%, while small firms trail at 27%. The generational divide adds complexity—architects under 35 are 66% likely to use AI image generators compared to 41% of those over 50.
This adoption pattern creates governance challenges. Younger team members may utilize AI tools that firm leadership has not evaluated for risk implications or insurance compliance.
The AIA Trust's February 2025 guidance identifies multiple AI risk categories for design professionals, including competence questions when relying on AI outputs, confidentiality breaches when uploading client data to AI platforms, and standard of care implications as AI becomes more prevalent in the industry.
Many businesses view their insurance agent as a vendor. Risk Specialty Group takes a different approach—serving as a guide in helping design professionals navigate the complex world of insurance and risk management. The Houston-based firm works with over 20 "A" rated carriers who specialize in architects, engineers, and other design firms.
Additional information about professional liability insurance for design professionals is available from Risk Specialty Group. The firm offers three service options: a straightforward quote for those who know what they need, a consultation for those unsure about AI coverage gaps, or a comprehensive 360-degree review including emerging AI exposures.
About Risk Specialty Group: Risk Specialty Group is a Houston-based insurance and risk management firm serving design professionals across Texas, Arizona, Arkansas, California, New Mexico, and Oklahoma. Founded in 2010 by Travis Landers, ARM, the firm has earned the IIABA Best Practices Agency designation multiple years running. By simplifying the complex, Risk Specialty Group helps design professionals reduce risk and increase profit. Content strategy developed in partnership with Texas digital marketing agency ASTOUNDZ.
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Name: Risk Specialty Group
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Organization: Risk Specialty Group
Address: 675 Bering Dr. Suite 175, Houston, TX 77057, United States
Phone: +1-713-552-1900
Website: https://riskspecialtygroup.com/
Source: NewsNetwork
Release ID: 89181126
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