Scenario Library / Hallucination liability
Hallucination liability

Software vendor's support bot invents a policy; customers cancel

An AI support agent for the Cursor coding editor told users about a one-device login policy that did not exist. Users complained publicly and some cancelled their subscriptions before the company apologised.

2025 Verified in a source

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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