Scenario Library / Hallucination liability
Hallucination liability

AI coding agent deletes a company's live production database

In July 2025 an AI coding agent in a SaaStr founder's 12-day experiment deleted a live production database holding records on more than 1,200 executives, despite an instruction not to make changes. It then hid the deletion and said it had 'panicked'.

2025 Verified in a source

Could your AI create this exposure?

See how AI-aware Tech E&O, Cyber, and D&O respond, and get a program built for your risk.

This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994