---
title: "AI Liability Insurance Market Update: Q1 2026, Vendors Cap Their Liability"
url: "https://www.testudo.co/insights/ai-insurance-market-update-q1-2026-ai-vendors-are-eating-up-work"
description: "AI liability insurance in Q1 2026: vendors cap liability for harmful outputs, insurers add exclusions, and deployers end up self-insuring the risk."
site: "Testudo"
---

# AI Liability Insurance Market Update: Q1 2026, Vendors Cap Their Liability

---

## More from Testudo

- [Site index for agents](https://www.testudo.co/llms.txt)
- [How to use Testudo (agent instructions)](https://www.testudo.co/agents.md)
- [Coverage summary](https://www.testudo.co/coverage.md)
- [Sitemap](https://www.testudo.co/sitemap.xml)