The Uninsurable Frontier: Generative AI Exclusions, Judgment-Proof Deployment, and Mandatory Financial Responsibility for Autonomous Enterprise Agents

Abstract: Tort law compensates injured parties through liability insurance. Standard commercial policies now exclude generative artificial intelligence. The Insurance Services Office offers three generative AI exclusions for casualty policies. Specialty carriers attach absolute exclusions across management lines. Model developers cap contractual exposure at twelve months of fees. When an autonomous agent causes bodily injury or financial loss, neither developer nor insurer stands behind the deployer. Thinly capitalized firms become judgment-proof. Uninsured losses fall on counterparties, workers, affected individuals, and public balance sheets. Financial responsibility statutes in nuclear power, maritime transport, and trucking solved this structural failure. Permission to operate requires verified financial capacity. Statutory guarantees protect third parties regardless of private policy exclusions. A comparable regime for autonomous enterprise agents can scale with delegated operational authority. Such frameworks combine surety bonds, statutory reserves, and retrospective industry pools modeled on the Price-Anderson Act. A mandatory public-protection endorsement guarantees that injured strangers recover. Keywords: Artificial Intelligence, Autonomous Agents, Enterprise Liability, Insurance Exclusions, Mandatory Financial Responsibility, Commercial General Liability, Judgment-Proof Problem, Price-Anderson Act, Motor Carrier Act, Form MCS-90, ISO CG 40 47, Absolute AI Exclusion, Delegated Authority, Operational Risk, Tort Law, Third-Party Liability, Software Indemnification, Risk Externalization, Corporate Asset Partitioning, Suretyship