Required Insurance Coverages for Automation Companies

Technology Errors & Omissions (Tech E&O) Insurance

This is the most critical policy for automation companies that develop, implement, or manage smart systems for clients.
The policy protects the company against third-party claims of professional negligence, development or integration errors, or system malfunctions that cause financial or operational losses to clients.

For example: if a control system supplied by the company causes a production line shutdown, the client may sue for loss of income. The policy covers legal defense and settlement costs.
For more information on this policy, click here.

Cyber Insurance

Modern automation systems rely on connectivity and data. A breach, an IoT device hack, or a ransomware attack can disrupt critical operations. Cyber insurance provides full protection—from breach response to system restoration, crisis management, third-party liabilities, and more.

Directors & Officers (D&O) Insurance

Executives and board members are exposed to claims from investors, partners, and clients due to management decisions. D&O insurance protects them personally, allowing them to lead with confidence.

Crime Insurance

Covers losses from internal or external fraud, including theft, unauthorized fund transfers, or control system breaches.

Employment Practices Liability Insurance (EPLI)

Protects the company against employee claims for discrimination, harassment, or wrongful termination—especially relevant in companies with complex development and operational teams.

Property & Business Insurance

Covers the company against physical damage to property, offices, or critical equipment. Can be extended to cover business interruption and loss of income due to covered events.

Key Risk Exposures for Automation Companies

  • Performance Risk – Any code, design, or integration error can impact a client’s critical business process.
  • Contractual Exposure – Obligations to clients or partners may require specific insurance terms by contract.
  • Regulatory & Compliance Risk – Compliance with standards like ISO, data security regulations, and product liability laws.
  • Third-Party Claims – Resulting from direct or indirect damage caused by the supplied automation systems.

Why Choose LAMDA?

We support dozens of technology companies, startups, and global corporations.
Our expertise in tech-focused insurance enables us to tailor the ideal coverage for your business—including regulatory support, compliance with customer requirements, and protection against complex operational risks.