The adoption of automation technologies has been growing at an astonishing rate across various industries in recent years.
Advancements in robotics, new AI applications, mounting labor shortages, increasing costs associated with humans performing mundane tasks, and post-Covid-19 effects – all contributed to its growth.
In fact, we are witnessing the formation of what we call “automation as a class” – a new vertical aimed at increasing productivity throughput, safety, and service reliability across all industries.
You may think such a fast expansion of automation is mostly happening in the manufacturing and logistics industries, but the advent of automation has arrived at many consumers’ front doors (literally).
In more and more neighborhoods across the country, you can get your food or groceries delivered by an autonomous robot or even hail a robotaxi.
However, while trying to commercialize their automation products and services, startups and more established companies face an increasingly challenging bottleneck: insurance.
Major insurance pain points are around the availability of coverage, pricing, and quality, frequently not fit for scaling robotics-based products and services.
Koop Technologies, a fast-growing insurance technology company for all kinds of automation risks based out of Pittsburgh, Pennsylvania, is addressing this problem.
The company recently launched a combined liability insurance package for companies developing and deploying off-road autonomous vehicles, robotics, and other automation technologies across more than 50 use cases.
The insurance package, called the Singularity Package, consists of fit-for-purpose insurance policies that can protect the robotics industry from third-party bodily injury, property damage, and downtime liability.
Now developers, integrators, and users of robots can purchase the coverages needed in moments using a digital, full-service insurance platform.
Kamron Khodjaev, chief commercial officer at Koop Technologies, says: “Traditional brokers and insurers do not have products or tools to address new and unique risk exposures, such as machine, vehicle, and robot risks defined by many technical specifications.
“The mispricing and underservicing of automation risks are significant. You may not even know it until a million-dollar claim is knocking on the door. There is a lot at stake to have insurance coverage that doesn’t work for your business.”
According to Koop’s underwriting team, which consists of insurance industry veterans, the current actuarial tables and conventional insurance underwriting practices were developed years ago and have not changed much.
The status quo of insurance primarily focuses on human errors, which shapes the current insurance rates and coverage language. However, robots are safer than humans. By limiting human touch, there are fewer injuries and occupational deaths.
Therefore, the robotics industry deserves a more suitable insurance product that is up-to-date and reflective of its outstanding safety records.
Koop Technologies has big plans to offer more insurance policies for this industry across different use cases, such as manufacturing, logistics, agriculture, retail, and commercial autonomous vehicles.
Automation developers and operators can save on insurance, assure their customers, and ensure faster adoption of their products and services.
Kamron says: “We already insure dozens of clients and receive daily inquiries about our new Robotics Errors & Omissions coverage and other products. We are prepared to help our clients grow with peace of mind.”