Last Updated: February 22, 2024, 12:29 pm by TRUiC Team

Robotics Company Insurance

Getting business insurance for your robotics company is essential.

This is because you will need to protect your company against a variety of foreseeable risks, such as those that relate to product liability claims, property damage disputes, and contract violations.  

Business insurance can also be pivotal when it comes to protecting yourself against wrongful termination claims or other employment law-related disputes.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Robotics Company

General liability insurance is — generally speaking — one of the most important insurance policies for robotics companies.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Even so, your company will likely need to purchase additional coverage in order to “fully” protect itself from all foreseeable risks, such as those that relate to: 

  • Injuries sustained due to a robotics product malfunctioning — Product liability insurance. 
  • Employee payment disputes or other employment law claims — Workers’ compensation insurance. 
  • Property damage or theft — Commercial property insurance.  

You will also need to find the right business insurance provider for your company’s unique needs.

There are currently two different types of providers that you can choose from as a small business owner: 

  1. Traditional brick-and-mortar insurance providers (e.g., Nationwide, etc.).
  2. Online insurers (e.g., Tivly, etc.). 

We recommend going with an online insurer as a small business owner in 2024. This is because they are significantly more affordable and so can help you stay as price-efficient as possible when starting out.

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Cost of General Liability Insurance

On average, robotics companies in America spend between $350 - $900 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a robotics company to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our low-cost business insurance review.

Common Situations That General Liability Insurance May Cover for a Robotics Company

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Example 1: As a visitor tours your robotics company, an employee accidentally knocks her to the ground. She suffers a broken arm as a result of the fall and sues your business for damages. General liability insurance would pay for your legal defense and any required settlement.

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Example 2: A competitor sues your business for libel. While you disagree with the claim, you know you need an attorney right away. General liability insurance would cover your legal defense costs and any required settlement.

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Example 3: One of your employees accidentally steps on a client’s high-end laptop. General liability insurance would pay to replace your client’s damaged property.

Other Types of Coverage Robotics Companies Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Product Liability Insurance

While you strive to build robotics products that meet exacting specifications, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and other property needed to operate your robotics business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials stored there.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your robotics company:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Robotics Company Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Generally speaking, yes. We recommend getting the following types of business insurance before you start a robotics company:

  • General liability insurance
  • Workers’ compensation insurance
  • Business interruption insurance
  • Commercial property insurance

This will ensure that you avoid a situation in which liability arises and you are not yet insured.

Not necessarily. Certain exceptions may be written directly into your robotics company insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.