The 3 Types of Automation Company Insurance That Business Owners May Wish to Consider
Depending on the circles you hang out in, automation is a hot topic for businesses that are seeking efficiency and results. As a company that specializes in delivering automation, you’re the business that helps other businesses become more efficient.
However, any time you’re digging into a customer’s established processes in order and creating automated solutions, there’s a real chance that you could find your company on the business end of a complicated lawsuit.
Automation company insurance makes it easier for you to protect your business and everything you’ve worked hard for to date.
1. Cyber Liability Insurance – Why is This Insurance Important?
According to Statistics Canada, 21% of businesses were affected by issues of cyber security in 2019.
If your business is storing or managing customer records electronically, a data breach could potentially have far-reaching consequences. Similarly, as an automation company, you may very well be writing programs that other companies use for their own data management.
Cyber liability insurance can provide coverage as you navigate the liability disputes that can come out of privacy concerns, cyber extortion, and hacking attempts.
2. Commercial General Liability – What Does it Cover?
If you operate out of an office, commercial general liability insurance is one of the first coverage options that your agent may wish to discuss.
For starters, a client could come in to discuss a project only to slip on the stairs while carrying an expensive laptop. Plus, even if client injuries may seem unlikely in your case, commercial general liability insurance can also cover defence costs, tenants legal liability, and even false advertising claims.
Also, automation doesn’t always work as it should and whether it’s the damage new automated machinery could cause to the property, product line, goods being manufactured and/or the building itself commercial general liability can also cover the property damage caused to third parties as a result of the installation of your equipment.
In other words, commercial general liability insurance can cover a wide range of scenarios that automation companies can easily find themselves in.
3. Professional Liability Insurance – What are the Risks You Need to Cover?
When you’re introducing an automation platform, preparing designs and/or making suggestions to improve a client’s internal processes, there’s a certain amount of risk involved on both sides.
If mistakes in the assessment & design stage occur or an employee accidentally overlooks an important task/step during the design process it can have serious financial implications like down time, cancelled orders, brand damage etc.. At the same time, if a customer determines that they’ve lost money due to a program you’ve written or a system you’ve changed, they may choose to seek compensation.
Professional liability insurance, also known as errors and omissions insurance, offers you with coverage in the event that a mistake or an oversight results in economic loss for your client.
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Here’s Why You Should Hire a Broker for Your Automation Company Insurance Needs
As the decision-maker of an automation company, you’ve already got a lot on your schedule.
When you’re not generating leads and getting to know your customers, you’re working on projects and supervising installations – or following up with the staff who are responsible for those tasks.
Putting together an insurance coverage plan that doesn’t leave your business exposed to potential risks can be complicated. Hiring a reliable insurance company can make it easier to choose the coverage options that make the most sense for your business.
Contact an ALIGNED broker and get your FREE quote today.