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INSURANCE FOR ROBOTICS, INDUSTRIAL AUTOMATION & CONTROL SYSTEMS BUSINESSES
Automation & Robotics Risk: Why Insurance Needs to Reflect Both Hardware and Software
Automation, robotics and control technology businesses sit at the intersection of mechanical engineering, electrical engineering and software. That creates a distinctive risk profile: you’re not only shipping physical equipment — you’re delivering system performance, safety and uptime outcomes. Failures can cause property damage, injury, production downtime and major contractual disputes.
Many robotics and control projects are delivered under contracts that include warranties, performance guarantees, liquidated damages and acceptance testing criteria. There may be on-site installation, commissioning and integration with legacy equipment, subcontractors, and customer change requests that introduce “scope creep”. In parallel, cyber and operational technology (OT) risk has become a major concern: PLC/SCADA environments, remote access tools and connected devices can create liability and downtime exposures.
Insure24 arranges specialist insurance for automation and robotics manufacturers, system integrators, panel builders, machine builders, and control software providers. We help you structure a programme that addresses property, contractual and liability exposures — including public liability, product liability, professional indemnity, cyber, contract works and tools cover — so you can meet client procurement requirements and protect your balance sheet.
Call 0330 127 2333 for expert advice or request a quote online. If you want, we can also sense-check your contracts for uninsured exposures and help you present your risk clearly to underwriters.
Who This Insurance Is For
Automation and robotics spans a wide range of businesses — from specialist machine builders to multinational integrators. Insurers typically underwrite the risk based on what you design, what you manufacture, what you install, and how safety is governed. Your exposure is different if you supply a robot cell “off the shelf” compared to delivering a turnkey factory integration with safety PLCs and remote support.
We tailor cover to reflect your delivery model, contract profile, end-use sectors and territory. Below are typical segments we place cover for.
Typical Automation & Robotics Businesses
- Industrial robotics manufacturers and distributors
- Robot cell and production line integrators
- PLC/SCADA control engineers and software developers
- Panel builders and electrical control cabinet manufacturers
- Machine builders and special purpose machinery manufacturers
- Machine vision, sensor and inspection system providers
- Conveyor, pick-and-place and material handling automation specialists
- Remote monitoring and predictive maintenance solution providers
Common End-Use Sectors
- Automotive and tier suppliers
- Food and beverage manufacturing automation
- Pharmaceutical and clean manufacturing environments
- Semiconductor and electronics production automation
- Warehousing, logistics and fulfilment automation
- Aerospace and defence manufacturing processes
- Utilities and critical infrastructure control systems
- General engineering, fabrication and industrial manufacturing
Core Covers: What Most Automation & Robotics Firms Need
A typical insurance programme combines liability cover with protection for your assets and contract delivery exposures. Because many projects include design, manufacture, installation and commissioning, you often need more than public liability alone. Professional indemnity can be important where your design decisions, software code, control logic or specifications could cause a performance failure. Contract works protects projects while they are being built or installed. Tools and equipment cover protects portable or specialist assets used on client sites.
The most common gaps arise when businesses assume product liability will respond to a design/performance issue (often it won’t) or when professional indemnity is purchased without considering contract works and on-site activities. Insure24 helps you align cover so one incident does not fall between policies.
Typical Core Covers
- Public liability (third-party injury/property damage on premises or site)
- Employers’ liability (required for most UK employers)
- Product liability (damage/injury caused by supplied products)
- Professional indemnity (design/specification/control logic/software errors)
- Contract works (projects in progress, installation and commissioning)
- Tools and portable equipment (including hired-in plant where required)
- Property/buildings and contents (office, workshop, stores)
- Business interruption (protect cashflow after insured damage)
Optional Extensions That Often Matter
- Cyber insurance (data breach, ransomware, incident response)
- OT/network interruption enhancements (where available)
- Products completed operations and worldwide export territories
- Defective workmanship / efficacy extensions (market dependent)
- Goods in transit and marine cargo (high-value equipment shipments)
- Directors’ & officers’ liability (management and governance risk)
- Engineering inspection / statutory inspection covers where relevant
- Financial loss extensions for certain contractual exposures (limited availability)
Where Claims Come From: Safety, Performance & Downtime
Robotics and automation claims usually arise from one of three buckets: (1) safety incidents, (2) performance or specification disputes, and (3) downtime losses. Insurers will want to understand your safety governance, how you manage commissioning and acceptance testing, and how you handle change control when clients request alterations mid-project.
It’s also common for disputes to involve multiple parties — OEM hardware, integrator, software vendor, electrical contractor, end client — which means liability and professional indemnity cover needs to be clear on who is insured, what your responsibilities are, and how contractual indemnities are handled.
Common Claim Scenarios
- Injury caused by a guarding, interlock or safety PLC failure
- Damage to client equipment during commissioning or integration
- Robot collision causing property damage and business interruption
- Control logic error causing unsafe motion or unexpected stoppage
- Software update causing system instability or production downtime
- Mis-specification leading to performance failure and dispute
- Electrical fault causing fire damage or equipment loss
- Remote access compromise leading to OT disruption (cyber/OT exposure)
Risk Controls That Improve Terms
- Documented safety standards and risk assessments (machinery safety governance)
- Commissioning and acceptance testing sign-off processes
- Change control and version control for PLC/SCADA code and software
- Supplier/OEM vetting and integration documentation
- Clear scope definition and variation management in contracts
- Remote access policies, MFA, audit logging and segregation
- Incident response plan for critical client outages
- Training records and competency management for installers
Professional Indemnity vs Product Liability (Why It Matters)
Automation and control technology businesses often need both product liability and professional indemnity. They respond to different loss triggers. Product liability is typically designed for third-party injury or property damage caused by a product. Professional indemnity is designed for financial loss arising from negligence in professional services (design, specification, advice, programming, control logic, integration).
Many disputes in automation projects are performance disputes and downtime claims — which can be financial loss rather than physical damage. If a system fails to meet specification and the client suffers lost production, that often sits closer to professional indemnity (and even then is highly dependent on wording and exclusions). Getting the structure right reduces surprises.
Product Liability Often Responds To
- Third-party injury caused by a supplied product
- Third-party property damage caused by supplied equipment
- Legal defence costs for covered liability claims
- Completed operations exposures (after handover) where included
- Certain consequential losses arising from covered damage (policy dependent)
- Worldwide exports (where selected and underwritten)
- Contractual liability where it mirrors common law (wording dependent)
- Products in use at client sites (ongoing operations exposures)
Professional Indemnity Often Responds To
- Design/specification errors in automation systems
- Programming errors (PLC/SCADA code) and integration faults
- Negligent advice, consultancy and project management failures
- Failure to meet duty of care leading to client financial loss (wording dependent)
- Defence costs for claims alleging professional negligence
- IP infringement allegations (where included)
- Loss mitigation and rectification cost options (market dependent)
- Claims-made protection aligned to contract notification requirements
Cyber & OT Risk for Robotics and Control Systems
Robotics and control systems increasingly include remote access, cloud monitoring, and connected sensors. That creates cyber and OT exposure. A ransomware event can halt production at a client site, and disputes may follow about responsibility for downtime. Even if your company is not the target, your software supply chain may be implicated.
Cyber insurance can cover incident response, forensics, legal and regulatory costs, data restoration, and (policy dependent) business interruption. For robotics and control technology firms, it’s important to understand the interface between cyber cover, professional indemnity and product liability — particularly for claims alleging system downtime rather than data theft.
Cyber Covers Often Considered
- Incident response and forensic investigation
- Ransomware and extortion response support (policy dependent)
- Data restoration and system recovery costs
- Third-party privacy/security liability (where relevant)
- Network interruption and cyber BI (where included)
- Regulatory defence and notification costs
- Business email compromise and invoice fraud add-ons (market dependent)
- Supply chain incident response considerations (wording dependent)
OT Governance That Helps Underwriting
- Remote access governance (MFA, approvals, audit logging)
- Segmentation between OT networks and corporate IT
- Secure configuration and hardening of PLC/SCADA environments
- Patch strategy and documented exceptions where patching is risky
- Backup and restore testing for critical configs and code repositories
- Vendor management and third-party access controls
- Incident response plan for client outages and escalation protocols
- Secure development practices and code/version control
Our contracts included performance guarantees and commissioning milestones. Insure24 helped us structure PI, product liability and contract works so one claim wouldn’t fall between policies.
Managing Director, Automation Systems IntegratorPROTECT PROJECT DELIVERY
- Public & employers’ liability for on-site installation risk
- Professional indemnity for design/specification/software errors
- Contract works for projects in progress and commissioning
- Tools and equipment for portable assets on client sites
- Goods in transit for high-value shipped systems
PROTECT YOUR BALANCE SHEET
- Product liability for injury/property damage caused by equipment
- Cyber insurance and OT enhancements where available
- Property and business interruption for your premises
- Contract and territory alignment to reduce uninsured obligations
- Claims-ready governance: documentation and escalation plans
Compliance, Safety & Evidence (Why It Reduces Premiums)
Underwriters reward robotics and automation businesses that can evidence safety governance, engineering discipline and controlled delivery processes. Documentation also improves claims outcomes because it establishes what was agreed, what changed, and how acceptance testing was managed.
If you deliver machinery into regulated environments (food, pharma, medical, aerospace), your compliance approach becomes part of the underwriting story. Insure24 helps you package this evidence clearly for insurers.
- Machinery safety risk assessments and guarding standards
- Commissioning and acceptance testing sign-off procedures
- Change control, version control and release management for code
- Remote access governance and audit logging
- Installer competency, training and contractor control records
- Incident response and escalation protocols for client outages
- QA on panel build, wiring, testing and documentation
- Supplier/OEM documentation and integration evidence
FREQUENTLY ASKED QUESTIONS
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What insurance does an automation or robotics company need?
Most automation and robotics firms consider employers’ liability, public liability, product liability, professional indemnity (for design/software/integration errors), and contract works for projects in progress. Many also add tools/equipment cover, goods in transit, cyber insurance and business interruption for their premises.
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Do I need professional indemnity if I already have product liability?
Often yes. Product liability is usually intended for injury or property damage caused by products. Professional indemnity is intended for negligence in professional services such as design, specification, advice and software/control logic. Performance disputes and downtime claims can sit closer to PI and can fall outside product liability.
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Does insurance cover contractual penalties or liquidated damages?
Typically no, not automatically. Contractual penalties and liquidated damages are often treated as commercial performance obligations. Insurance can cover certain resulting liabilities (for example injury/property damage) and defence costs, but many purely contractual remedies are excluded. Contract review and scope clarity are key.
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Can cyber insurance help with OT or PLC/SCADA incidents?
Often, yes—depending on the policy wording. Cyber insurance can cover incident response, forensics, system restoration and sometimes business interruption. For OT environments, it’s important to understand how cyber cover interacts with professional indemnity and liability if a client alleges downtime losses.
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What information do insurers need to quote robotics insurance?
Insurers usually want: turnover split by activities (design/manufacture/install), contract types and performance guarantees, end-use sectors, territories, largest projects, subcontractor use, safety governance, commissioning/acceptance procedures, change control/version control for code, claims history, and details of remote access/cyber controls.
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Do I need contract works cover for installation projects?
If you supply and install systems, contract works is commonly needed to protect projects in progress, including materials on site and certain installation risks. Without it, damage during installation or commissioning can be uninsured or disputed. We’ll help match cover to your delivery model.