YC-backed licensed insurer Corgi is rolling out AI Coverage, a policy that pays out when AI systems screw up in production. It's not a standalone product — instead, it's a modular add-on that slots into existing tech liability insurance, letting businesses pick and choose what they want covered: algorithmic bias, AI-generated content infringement, training data violations, data incidents caused by autonomous agent interactions, and more. Corgi raised $108 million in January.
CEO Nico Laqua says traditional insurance giants like Hartford, Travelers, and Chubb have started excluding AI-related damages from corporate policies. Meanwhile, AI agents are already sending emails, moving money, and deploying code for companies. Legacy policies only cover software downtime and service breaches, leaving the new risks brought by AI in a vacuum.