Robotics in construction – are you adequately insured?

Robotics are increasingly being introduced across many sectors, in particular construction and manufacturing, to relieve some of the manual burden, speed up productivity and ensure higher levels of accuracy and safety.
 
Whilst this may sound somewhat futuristic, many companies are already either utilising or planning to use robotics – including robotic arms, inspection robots, autonomous robots, drones, self-driving cars and other technologies – and advances in robotics and artificial intelligence are taking place at an exponential rate.
 
In construction, robots can significantly enhance safety by handling large, heavy loads, working in unsafe spaces and facilitating new, safer methods of construction. With construction workers accounting for around 30% of workplace injuries and being up to four times more likely to be involved in a fatal accident, increased safety is a major benefit.
 
Robot automation also offers huge potential to enhance productivity, efficiency and manufacturing flexibility, with applications including robotic welding and material handling on building sites, robot 3D printing of houses and customised structures, and automating the fabrication of building components and modular homes off-site.
 
With a skills and labour crisis in the construction sector looming over the next decade, alongside a growing need for more affordable, environmentally friendly houses, more construction companies are looking to introduce robotics into their organisation. Robotics not only makes the industry safer and more cost-effective, but also improves sustainability and reduces environmental impact by cutting waste and enhancing quality, meeting the need to provide ever more environmentally friendly products.
 
Robot risks
As with any new and emerging technology, there are risks, calling for bespoke insurance to protect businesses and individuals from claims relating to mistakes, malfunctions and design flaws from robot-related accidents.
 
As this field is advancing rapidly and the risk of robot applications and their exposures is to some extent unknown, there are no standard products, although insurance needs to provide cover for bodily injury to others, property damage, business interruption and loss of income.
 
Typical covers include cyber insurance, as anything that has an internet connection is vulnerable to hacking or external interference; technology errors and omissions (also known as professional liability), as the software that drives the robot fails to perform as expected and causes unexpected risks; and product liability insurance, offering protection against claims relating to AI architecture and robotic products.
 
If you’re thinking or are already utilising robotics in your construction company, please talk to us. We have many years’ experience arranging insurance for the construction industry and can advise on the right insurance for you. To ensure you have the correct level of cover in place, call us today on 01992 703 000 or email insurance@mcdonaghs.co.uk