When AI quietly breaks things, who pays?

Keypoints

• AI mergers can create straddle claims that fall between tail and go-forward D&O policies.
• Governance statements in applications can become warranty-like grounds for denial if not narrowed.
• Risk managers should gather AI use information through a structured internal renewal process.
• Claims-made coverage and retroactive dates are critical for slow-building model degradation claims.
• Business interruption coverage for AI firms depends on language covering cloud, compute, and vendor outages.