Insurance for Robotics Companies

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Overview

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 Organizations Important?

Although robotics companies experience challenges that other companies don’t, they still face the same fundamental risks of doing business. Insurance is a crucial safety net for robotics companies to have to keep operations from halting or the company from shuttering.

As mentioned, some robotics companies have faced multiple challenges in gaining momentum. For example, to move forward on a pilot project, a company needs plenty of safety nets, including insurance. Without the right policies, most local governments won’t greenlight the project.

Robotics is an industry ripe with innovation. The engineers, developers, technicians, and operators thrive on new technologies and fresh ideas. In short, it’s a space filled with rapid development. A lawsuit or legal holdup can whiplash a robotics company quickly, impacting everyone involved — sometimes shuttering the most well-intended business. To support continued evolution, robotics companies need insurance to help keep up the swift pace.

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

If someone sustained a personal injury because of a robot, it’s tricky to determine whose fault it is. Do you blame the technology or the human being that is manning the robot? Thankfully, the insurance industry has not seen a massive uptick in liability claims from the robotics industry. However, the few cases that have surfaced shed light on this particular vulnerability. Some insurance carriers aren’t confident how to insure robotics companies because so little history exists on incidents within the industry. Liability is undoubtedly a significant exposure to face in the world of robotics.

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.

Human Error

Unlike artificial intelligence (AI), robots are programmed by human beings to do the same function over and over. Whether it’s playing with a pet or taking pictures from an unmanned flying camera, they follow orders precisely. Already, 51.5K warehouse workers are hurt or killed each year. Add robots into the mix, and the mistakes might become more significant or lethal. However, when a robot malfunctions, it’s often the fault of the person who programmed it. Naturally, this creates a distinct risk in this industry.

Types of Ecommerce Companies that need insurance

  • Consumer
  • Industrial
  • Logistics
  • Education
  • Gaming
  • Healthcare
  • Machine Learning
  • Military
  • Software
  • Public safety
  • Aerospace
  • Energy
  • Hardware
  • Automotive
  • Marine tech
  • Agriculture
  • Defense
  • Pets
  • Cleantech

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the 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.

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 of your industry, proactively ensuring you’re covered.

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 of your industry, proactively ensuring you’re covered.

Rachel Jenkins, Customer Success Manager

Meet your specialist

Rachel is one of the premier leading insurance professionals with almost 10 years of experience in the industry. She has been with the Founder Shield team for several years, focusing on client advising and improving policy language for venture-backed companies.

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