Major insurance carriers including AIG, Great American, and W.R. Berkley are quietly declining to cover AI-related business mistakes, citing their inability to trace how AI systems reach conclusions. This matters because every business now uses AI internally and relies on insurance to cover errors — companies deploying AI will face either higher premiums, coverage gaps, or outright policy denials as carriers redesign their risk models. The irony is that insurers are adopting AI for their own operations while refusing to insure customer AI deployments, creating a widening insurance market gap for AI-dependent businesses.