Words of wisdom from our business insurance experts.
Understanding Insurance for Robotics Manufacturing
In the wide world of the modern tech industry, robotics manufacturing stands out as a special and high-impact field due to its great potential to impact the efficiency and capabilities of countless other industries. Automated machinery, for example, has revolutionized the manufacturing and distribution of essential products such as vehicles.
As in any business, in order to best succeed, robotics companies need to be covered with the right kinds of insurance. Some of the coverage they need is similar to other industries, but there are also unique considerations for obtaining the right insurance for makers of robotics technology.
Insurance for Robotics Manufacturing
There are plenty of different scenarios in which insurance would greatly benefit a robotics manufacturer. As a result, there are several different types of coverage that are necessary for these businesses to protect themselves. The bottom-line costs of the insurance they need will depend upon several factors, but it's important that such companies budget to obtain some form of the following coverages.
General Liability Insurance
While not required by law, having a general liability insurance policy is essential for just about any business. For robotics companies in particular that work with manufacturing equipment, this is especially true. The fact that many of these companies have large amounts of heavy machinery on their property, as well as employees operating that machinery, is good reason to obtain this kind of policy.
Because it protects against a variety of third-party claims, general liability insurance will also cover a robotics manufacturing company for other kinds of accidental injuries on their property, including things like visitors tripping and getting injured. The legal costs that could be accrued if someone were to sue the company as a result are reason enough to get this insurance, but beyond that there are medical costs and potentially other damage expenses that the company may be responsible for in the end.
Going without general liability insurance is not a good idea, because you simply never know when an accident could happen. Even one such incident can be enough to cause a company both significant financial damage and public relations trouble.
Product Liability Insurance
Robotic machinery that is sold to clients (including other businesses) may cause accidental injury to a user, whether the user is authorized or not. Because of this possibility, product liability insurance is key for robotics manufacturing companies. Even if a lawsuit is filed that doesn't hold much weight in court, product liability insurance can kick in to help cover settlement amounts and miscellaneous legal fees that may be accrued as a result.
Workers' Compensation Insurance
Due to the kinds of equipment involved in the robotics manufacturing industry, it's not surprising that work-related injuries may occur. Besides equipment-related issues, there are also plenty of other ways that team members may be injured at work.
That's why workers' compensation insurance is important. Businesses may be legally responsible for covering the medical costs, wages, and other related expenses for employees hurt on the job, and those can really add up. Workers' comp will prove to be more than worth the premium in the long run.
To have the right coverage to protect their operations, robotics manufacturing companies also need to obtain property insurance. Depending upon the location of the company's facilities, there may be natural disasters that could cause damage (such as fires, tornados, or hurricanes). Theft and property damages are other basic issues that this type of policy will cover. It's vital that your business be able to bounce back quickly from these kinds of issues and not lose too much productivity as a result.
Cyber Liability Insurance
In the tech industry, data is an all-important asset and something to be carefully protected. For robotics manufacturing businesses, it's key to have the cyber security to prevent cyber attacks and hacking in the first place. However, if and when such a data breach does occur, cyber liability insurance is there to reimburse for damages related to the incident.
Cyber liability insurance helps to provide data restoration when it's needed. Insurers can also give you tools to prevent and prepare for data breaches. Be sure to take advantage of those resources to maximize the insurance's benefit to your business.
Transit and Transportation Insurance
If your business handles the transportation of your products in any capacity, transportation insurance will ensure that unexpected issues on the road don't cost your company. For example, if a business that provides robotics as a service is shipping one or more pieces of large machinery to a customer, and the vehicle carrying them is hit by an 18-wheeler or other vehicle, transportation insurance will help cover damages to the equipment.
Theft is another potential issue on the road, especially with expensive and specialized equipment like robotics. This type of insurance will help to protect against replacement costs should products be stolen in transit. Transit and transportation insurance can also cover loss and damages that occur when your products are being stored off your property or are on their way to a customer or another party.
Umbrella insurance is a "just-in-case" kind of insurance that is helpful to have in place to round out your robotics business insurance policy. Robotics manufacturing carries with it many inherent risks, and if a certain lawsuit or accident ends up leading to costs that your primary insurance policies simply don't cover, umbrella insurance can step in and help prevent your business from having to pay exorbitant costs (and perhaps go into debt in the process). It literally pays to be prepared with umbrella insurance.
Find the Optimal Robotics Manufacturing Insurance for Your Company
Business insurance isn't a simple topic to address, and every industry brings its own complications and nuances to the conversation that need to be taken into account. To find the best insurance coverage for your robotics manufacturing business, contact Fullsteam Insurance. Our knowledgeable team will work with you to craft just the right combination of coverages to thoroughly protect your business and products.