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Major insurance providers are pulling back from AI-related coverage as potential claim exposures climb into the billions. The retreat signals growing uncertainty around liability frameworks for AI systems—a concern that extends beyond traditional tech into blockchain applications. As AI agents become embedded in DeFi protocols and autonomous trading systems, the absence of comprehensive insurance products could amplify systemic risks. This coverage gap might force crypto projects to internalize more risk or develop decentralized insurance alternatives. For investors evaluating AI-integrated blockchain platforms, understanding exposure limits just became critical due diligence.