Advanced Technology Drives Product Liability Claims

Topics: Agent Resources

As of May 2017, self-driving and self-parking cars are allowed on public highways in New York. The new policy went into effect after Governor of New York Andrew Cuomo signed a budget bill allowing a one-year test of the new technology. According to a July 2017 article from Insurance Journal, this technology was previously prohibited because of a state law requiring that driver’s “keep at least one hand on the steering wheel.”

Now that the technology is being tested, those looking to invest in driverless cars and self-driving cars want to know: How will driverless car technology drive automation and product liability claims?

Self-Driving Car Technology Drives Innovation

Self-driving cars could change the way your clients do business. Their insurance should match their changing needs.

Driverless car and self-driving car technology may seem like a thing of the future, but as these new technologies are tested they open the doors for innovation that could change the world. What’s on the horizon?

According to insurance expert and attorney Stanley Zator, of Einhorn Harris, driverless cars could vastly decrease the number of car accidents since the majority are caused by human error. And that means that small and medium-sized businesses that rely on automotive transportation to transport their products could see a drop in their commercial auto insurance premiums, as well as product liability claims.

But that’s not all. Driverless car and self-driving car technology also lead the way for innovative technology that could lower the environmental effects of society that vastly depends on automotive transportation. Global rise in temperature has caused an increase in commercial agriculture insurance premiums as well as in the number of crop insurance claims.

The technology could also increase productivity for small business owners and employees. Instead of sitting in bumper-to-bumper traffic, commuters can recapture the time usually lost to a long morning and afternoon commute and use it for leisure or work.

Product Liability Claims & Self-Driving Cars

Automotive safety is a top concern as self-driving cars hit the roads, making cyber and auto liability insurance must-have products.While self-driving car technology will undoubtedly improve our lives in many ways, there are still a few roadblocks ahead for the innovative tech. Cyber security and safety are two issues that could cause problems in the near future. As it is, modern cars are already at risk for a cyber-attack, thanks to their connection to the internet.

 

According to Risk Management Magazine, “After the more than 300% year-over-year increase in ransomware reported to the Department of Justice in 2016, these crippling attacks pose one of the highest-profile cyberrisks going into 2017.”

As self-driving cars become more prevalent on the roads of the US, it is clear that their cyber security and cyber liability coverage will need to be able to stand up to the risks.

Adaptation is Key for Independent Agents

For independent insurance agents with small and mid-size business clients, the key to staying ahead of the curve is to be proactive. Ensure that you have a formidable cyber liability policy to offer from a trustworthy insurance company, as well as a full suite of product offerings for various industries that might be effected, and you’ll be ready to capitalize on self-driving technology. If you don’t have AmTrust products in your wheelhouse, join our team to get access.

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