Corgi Unveils AI Liability Insurance as Industry Risks Rise
Corgi has launched an AI liability insurance product targeting AI-generated risks for businesses.
Why it matters: Traditional insurers are excluding AI-related damages from coverage, leaving businesses vulnerable amid rapid AI adoption. Corgi’s AI Insurance Coverage fills this protection gap for companies deploying AI in legal and tech operations.
- Corgi’s AI Insurance Coverage launched May 4, 2026.
- Coverage addresses risks like biased algorithms, harmful content, and adversarial attacks.
- The product integrates with existing E&O policies and offers a modular, customizable approach.
- Traditional insurers have secured regulatory approval to exclude AI-related damages from most liability policies.
Corgi, a Y Combinator-backed insurance startup, announced its new AI Insurance Coverage on May 4, 2026, aiming to protect companies from the fallout of AI system failures, ranging from biased decision-making to adversarial attacks and issues with synthetic media.
- The policy is designed as a modular add-on to existing Tech Errors & Omissions (E&O) insurance, letting businesses tailor coverage based on their use of AI technologies.
- Per Corgi CEO Nico Laqua: "Businesses are moving fast with AI, but their insurance hasn't kept up. We built this product for the reality companies are already in, where AI is making decisions, taking actions, and sometimes making mistakes."
The launch comes as major insurers—including AIG, WR Berkley, and Great American—move to exclude AI-related damages from general liability policies. State regulators have approved over 80% of such requests, sharply limiting coverage options for businesses relying on AI.
The demand for AI-specific liability protection is exploding. The AI liability insurance market had a $6.8 billion global valuation in 2025 and is projected to exceed $34.2 billion by 2034. Corgi itself raised $108 million in January 2026 to develop insurance tech tailored to these emerging risks.
As law firms and corporations accelerate AI adoption for legal workflow and decision support, specialized coverage like Corgi’s is likely to become standard risk management practice.
By the numbers:
- $108 million — Corgi's January 2026 funding round to build AI-driven insurance systems
- Over 80% — Approval rate for traditional insurers seeking to exclude AI risks from liability policies
- $34.2 billion — Projected global AI liability insurance market valuation by 2034