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Posted on: February 21, 2025 by Huntersure
Automation has transformed the manufacturing industry, creating smarter, more efficient production processes. However, as technical consultants take on more responsibilities in integrating these technologies, they also face liability exposures. As insurance agents, you must stay ahead of these risks to recommend the right professional liability insurance for technical consultants, ensuring they are protected against emerging exposures.
The rise of automation in manufacturing is redefining the role of technical consultants. Consultants are now responsible for integrating robotics, AI-driven software, and smart manufacturing systems into existing operations.
With these advancements come new risks, including the following exposures.
These evolving risks make it crucial for insurance agents to work closely with technical consultants to ensure they have the right coverage.
Below are some of the most pressing liability risks that technical consultants face in an automated manufacturing landscape.
As automation becomes more sophisticated, these liability risks will only grow, making it imperative for insurance agents to offer tailored coverage solutions that adapt to the evolving landscape.
Given these risks, professional liability insurance for technical consultants is essential for providing financial and legal protection against various risk exposures that they may encounter in an increasingly automated landscape.
For example, negligence claims are a common concern, particularly when a consultant’s error, miscalculation, or oversight results in financial losses for their client. The client may seek damages for lost revenue and operational setbacks. This risk makes professional liability insurance an essential safeguard from these costly claims.
Errors and omissions coverage is another key component, protecting against claims of professional negligence, misconfigurations, or system integration failures that result in client financial losses. However, insurance agents should make it clear to clients that E&O typically does not cover regulatory fines or contractual disputes unless linked to professional negligence.
Legal defense costs can also pose a significant financial strain for technical consultants facing lawsuits, regardless of the claim’s validity. Professional liability insurance helps cover these expenses, but agents should clarify whether defense costs are included within policy limits or covered separately. Understanding this distinction is essential for evaluating overall coverage adequacy.
As insurance agents, you play a crucial role in helping your clients navigate the complexities of automation. Below are key ways you can provide support.
Understanding your client’s role in automation projects is essential for determining their liability exposure. You need to conduct thorough risk assessments, considering factors such as the complexity of their work, the industries they serve, and their level of involvement in system integrations.
You should recommend policies with endorsements that cover technology-related liabilities to ensure your clients have adequate protection.
These policies may include cyber liability endorsements for data breaches and expanded errors and omissions protection for automation-related risks. They can also offer coverage tailored to the unique exposures of technical consulting in smart manufacturing.
Automation technology is continuously developing, and so are the risks associated with it. As insurance agents, you must stay up to date on emerging trends in smart manufacturing, artificial intelligence, and industrial automation.
By keeping your clients informed about these developments, you can help technical consultants proactively adjust their liability coverage to mitigate new risks.
As automation continues to reshape manufacturing, the risks facing technical consultants will only increase. Staying proactive with technical consultants insurance ensures that professionals in this field are well-protected against potential liabilities.
Get in touch with Huntersure today to learn how you can help your clients navigate the complexities of automation risk with comprehensive professional liability coverage for technical consultants.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding, and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
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