The pace of technological advancement is only accelerating as time goes by. That creates huge potential for all types of businesses to improve efficiency and expand into new markets. Putting these emerging technologies to use, however, may also change the nature and frequency of risk exposure, which is something to consider when determining what kind of coverage you need for your business.
Telematics and Driverless Cars
The inclusion of telematics systems in more and more vehicles means that you can collect and analyze data on the location of your company cars, as well as the driving habits of your employees. This may help you mitigate risk, as it lets you identify and address potential issues before they become actual accidents.
Similarly, driverless cars promise far fewer accidents because they eliminate the possibility of distracted driving. Of course, driverless cars may still be involved in accidents for a variety of reasons, and in those situations, conventional commercial auto insurance may not cover the subsequent claims. If you do decide to add self-driving cars to your fleet, it’s important to review your policy options and put in place whatever’s appropriate to cover your adjusted risk.
The increasing proliferation of wearable technological devices in the form of things like smart watches and Google glass has the potential to improve business efficiency and performance. But using these devices in a business setting also opens you up to invasion of privacy claims that may not be covered under your standard business insurance policy. So if your employees are beginning to use these types of devices on a regular basis, it’s important to adjust your policy to reflect that specific type of risk.
Internet of Things
This term generally refers to the way so many devices can be wirelessly interconnected, sharing information and working in tandem to improve efficiency, convenience and performance. These all sound like good things, but they do bring added risk with them, including the potential for invasion of privacy claims.
Other issues may involve property damage or bodily injury in the case of devices that are damaged by power surges and short out entire electrical systems. These multiple individual connections can open you up to cyber security threats as well if they’re not properly protected. For all of these reasons, it’s important to evaluate each part of your system as you put it in place, and it’s also vital that you reassess your insurance coverage every time you upgrade to new technology to ensure you’re covered for your actual risk exposure.
The speed of change in the types of technologies available and in their potential applications in the business world makes regularly evaluating your risk a necessity to make sure that you’re fully covered by the proper business insurance policies. This will help keep your company financially stable moving forward, allowing you to grow with confidence and not be blindsided by liabilities you didn’t know you had.
If you’d like to learn more about the coverages we offer and how they can help you keep your business protected as you incorporate emerging technologies, contact our offices today.