The robotics industry is innovating at an incredible pace, creating new opportunities and transforming everything from manufacturing to logistics. But this rapid growth also introduces complex and unique risks.
What happens if a robot malfunctions and causes property damage or injury? What if a software error leads to a critical system failure? These are the kinds of risks that can disrupt your operations, damage your reputation, and threaten your company’s future.
We offer specialized insurance designed for robotics companies. Our coverage is built to protect you from the unique liabilities of this industry, including product liability, bodily injury, property damage, and professional errors. With the right protection, you can focus on building the future of robotics with confidence.
Robotics is the inspiring intersection of engineering and computer science. This industry has all but taken flight in the 20th century, contributing to our everyday lives, commercial goals, and military missions. It’s a fast-growing and ever-evolving space that continues to reach new benchmarks each year.
Robots are often assigned to do jobs deemed too hazardous for humans, such as deep-sea exploration, bomb defusing, rescue missions, etc. But consider the use of drones and self-operating vacuums, as well. Plenty of individuals depend on robots in their homes or for leisure. Plus, many other industries lean on robotics for education and training purposes. Although robotics has carved out a distinct space in which to contribute to the world, it faces a unique set of risks, too.
Why is Insurance for Robotics Companies Important?
Robotics companies can use insurance to protect themselves from various risks, streamline their operations, and build credibility within the industry.
Property Loss
Robotics companies tend to invest in high-end equipment that is often specially designed for the company’s overall vision. Nearly $1.5B worth of robots and equipment was shipped to North America in 2018 alone. If your company suffers from a natural disaster or break-in, it might be challenging to repair or replace the equipment and space designated for business operations.
Cybersecurity
Many industrial robots are operated or monitored remotely, putting your data at risk. A cybercriminal could steal information, such as production data, or even target a specific robot. In either case, data breaches—which cost companies over $4M on average—could cause damage to your entire operation’s workflow as well as the equipment itself.
Liability
Pinpointing liability after a robot-related injury is complex. With limited claims history, insurers are cautiously navigating this new risk landscape. As robotics becomes more integrated, determining fault—whether it lies with the technology or the operator—will be a major liability challenge for the industry.
Product Failure
If a robot fails to perform as expected or intended, the failure could result in financial loss. The root of the problem could be an ill-fitting part or a slew of other issues. As in many markets, the robotics industry depends on trial and error to move forward in innovation—but product failures can cost well over $1.5M. Still, someone must take responsibility when things don’t work as planned.
Robotics Insurance Coverage & Policies
These coverages form the foundation of any risk management program for robotics companies:
The potential of a customer being injured while operating a scooter or bike is the biggest risk facing the micromobility space. In addition to the need to insure yourself against this risk, it’s crucial to know that this coverage will be required in at least $1M per occurrence and $2M in the aggregate in every city you wish to operate. Most cities will actually require more.
When employees sustain work-related injuries, employers are typically responsible for their medical costs and lost wages. This policy covers these expenses, protecting employees while keeping companies running smoothly.
Cyber insurance protects companies from third-party lawsuits relating to electric activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.
Any company with employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects companies against lawsuits related to employment practices.
Companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Consider McDonald’s notorious “Hot Coffee” case in the 1990s, for example. No matter if the claims are grounded or not, this policy covers defense fees and settlements.
Whether it’s a devastating fire, natural disaster, or burglary, property insurance responds. This policy reimburses companies for direct property losses, supporting recovery and momentum.
Logistic companies move goods by the ocean, air, and land, facing the risk of damaged goods, theft, and other liabilities. This policy protects from business property loss or damage when it’s in transit or stored offsite.
The cost of insurance for a robotics company is not a fixed price. Instead, it’s a variable number determined by several key factors specific to your business and the technology you’re developing.
Here’s what insurers typically consider when calculating your premium:
Your Company’s Size and Scope: The number of employees you have, your revenue, and the scale of your operations are all factored in. A large manufacturer of industrial robots will have a different risk profile and cost than a small startup creating a specialized medical device.
Safety and Risk Management: Insurers will evaluate the safety protocols you have in place. This includes your product testing procedures, how you handle quality control, and the safety features built into your robots. Robust safety measures can lead to a lower premium.
Policy Structure: The amount of risk your company is willing to assume will directly impact the final cost. For example, opting for a higher deductible will lower your annual premium but mean you pay more out of pocket for a claim.
Claims History: Your company’s past claims record is a major factor. A history of liability claims, product malfunctions, or other incidents will likely result in a higher premium, while a clean record can help keep your costs down.
Robotics Claims & Examples
Navigating a commercial insurance claim is often challenging, often fraught with confusion and multiple unknown factors. The following four-part series outlines the ins and outs of commercial insurance claims:
Implementing a comprehensive risk management program is key to lowering insurance costs. Insurers will look for evidence of robust safety protocols, such as meticulous product design and testing, third-party certifications, and documented maintenance schedules for deployed robots. Providing clear and thorough training materials for customers and end-users also demonstrates a commitment to reducing potential liability. Finally, a strong cybersecurity framework, including network monitoring and data encryption, can help mitigate cyber risk and improve your insurability.
A robotics company should consider insurance and risk management from its earliest stages, well before a product is launched. Proactively identifying risks during the design and development phases can help prevent costly issues down the line. As you move from prototype to commercialization, establishing formal risk management procedures and securing a foundational insurance policy (like General Liability) is essential. The type and amount of coverage should then scale with your company’s growth and the increasing complexity of your products and operations.
The most common liability claims in the robotics industry often stem from three main areas. The first is product liability, which arises when a robot or its components are found to be defective and cause injury or property damage. The second is professional liability, which can occur if a software error or a design flaw leads to a client’s financial loss or business interruption. Finally, there is the risk of bodily injury to human workers or bystanders that may occur due to a robot’s unexpected movement, a system malfunction, or a failure to comply with safety standards.
Robotics Insurance Insights
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Finding robotics insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined and intuitive as possible.
1
Get a quote
Use our custom-built digital platform to get quotes fast. We automate clerical tasks that plague traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.
2
Pair with a specialist
No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.
3
Stay one step ahead
To do better, you need to know better. With changing political, technological, legal, and economic landscapes, staying ahead of the curve is critical.
Our in-house team is tapped into the latest developments in your industry, proactively ensuring you’re covered.
Schedule Time with a Robotics Expert
Risk Calibration
Let’s figure out if you’re under- or over-insured and whether your current policies have detrimental gaps.
Identify Cost Savings
We’ll compare your current policies with our extensive benchmarking database to see if your risk and costs have kept pace.
Risk Calibration
Walk away with a detailed plan to manage risk as your company scales — no strings attached.
Why Choose Founder Shield?
Founder Shield is a leading insurance provider that specializes in offering comprehensive coverage for high-growth companies, offering numerous benefits and advantages over traditional insurance providers. Here’s a breakdown of some of the key features and benefits that you’ll enjoy with us:
Benefits of Choosing Founder Shield
Industry Expertise
Founder Shield is focused on protecting rapidly evolving robotics startups. We ensure that our products are tailored to meet the unique needs of robotics companies.
Customized Solutions
Founder Shield offers bespoke insurance policies that are designed specifically for each client’s needs, ensuring comprehensive coverage that addresses the unique risks associated with robotics operations.
Fast Quotes
With Founder Shield’s streamlined quoting process, you can receive a personalized quote for your robotics insurance quickly, allowing you to make informed decisions fast.
Ease of Use
Founder Shield’s user-friendly digital platform makes it easy to manage your insurance policies, submit claims, and access important documents whenever you need them.
Dedicated Support
Founder Shield provides exceptional customer service, with dedicated account managers who are always available to assist you with any questions or concerns you may have about your insurance coverage.
Scalable Coverage
As your business grows, Founder Shield’s insurance policies can grow with you, ensuring you always have the right level of coverage for your changing needs.
Founder Shield is a preferred choice for robotics businesses because of our specialization in the industry. We offer flexible and customized insurance policies, a speedy quoting process, and exceptional customer service with dedicated account managers.
Great service – proactive, responsive, go beyond what I have expected from previous providers. The team do a wonderful job
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