Robotic System Failure & Product Liability Risk

• System Failure Protection – Coverage for losses from mechanical or software failures that disrupt production or damage equipment.
• Product Liability – Financial protection if your products cause injury or damage to third parties.
• Business Interruption – Reimbursement of lost profits and ongoing expenses when operations are halted due to covered incidents.
• Legal Defence Costs – Support for defence fees, settlements, or judgements arising from lawsuits.
• Recall Expenses – Coverage for costs associated with product recalls triggered by faults or defects.
• Cyber Liability Add-ons – Protection against cyber risks impacting robotic systems and software.

• Robotic system failures due to mechanical, electrical, or software faults.
• Product defects resulting in injury, property damage or loss.
• Business interruption caused by equipment breakdown or cyberattack.
• Claims arising from manufacturing errors or faulty design.
• Losses from recalls or orders to remove defective products from the market.
• Third-party bodily injury or property damage caused by your products or operations.
• Cybersecurity breaches impacting robot control systems or data integrity.
• Supply chain disruptions affecting production schedules.

• Industry Expertise – We specialise in insurance solutions for robotics and advanced manufacturing sectors.
• Comprehensive Cover – Policies designed to cover physical, operational, product liability, and cyber risks.
• Customised Policies – Tailored coverage options suiting all business sizes and risk profiles.
• Quick Claims Handling – Fast and efficient claim support with specialists experienced in robotics manufacturing claims.
• Competitive Premiums – Access to multiple insurers ensures competitive pricing without sacrifice on coverage.
• Dedicated Support – Expert brokers providing personal advice and ongoing risk management guidance.

• 1. Request a Quote – Provide details about your robotics products, manufacturing process, and risk controls.
• 2. Coverage Explanation – Our brokers will outline your options and recommend appropriate coverages.
• 3. Policy Customisation – Adjust limits, endorsements, and excesses to fit your business needs.
• 4. Purchase & Activate – Finalise your policy and receive immediate confirmation of coverage.

Product liability is the legal responsibility a manufacturer holds for any injury or damage caused by defects in their products. Robotics manufacturers are particularly exposed due to the complex nature of their products and the potential harm robotics systems can cause to users and bystanders.

• Design Defects – Faults arising from an inherently unsafe design.
• Manufacturing Defects – Errors or deviations during production affecting safety or functionality.
• Failure to Warn – Insufficient or missing instructions and warnings about product risks or misuse.
• Software Malfunctions – Programming errors that cause unsafe operation or system crashes.

• Regular maintenance and inspection of robotic equipment to detect wear and faults early.
• Comprehensive software testing and updates to minimise programming errors and vulnerabilities.
• Employee training on correct operation and emergency procedures.
• Implementation of safety sensors and automatic shutoff systems to prevent accidents.
• Supplier quality control and assessment to reduce component defects.
• Robust quality assurance processes throughout design and manufacturing.
• Cybersecurity protocols protecting control systems and data from unauthorized access.
• Incident response planning for swift recovery from system failures or product issues.

Situation: A robotics manufacturer experienced a critical software fault that caused robotic arms on the production floor to malfunction, damaging multiple units and halting manufacturing for 5 days.

Impact: The software failure resulted in repair costs of £120,000, business interruption losses estimated at £75,000, and third-party claims from clients affected by delayed orders.

Resolution: The manufacturer’s policy included system failure and business interruption insurance which covered repair costs and lost profits, while product liability cover assisted with client claim settlements. Prompt claims handling from Insure24 enabled quick recovery and minimal financial impact.