Where New Technology Could Place Your Business at Risk
While new technology is expected to solve a number of our problems–from reducing human error to growing the global economy–it is also expected to have a significant effect on corporate liability, commercial litigation, insurance litigation, and product liability claims. As the industry grows in complex technology, companies and insurers need to make sure that they consult the right attorneys so that they ensure that their claims processing is up-to-date because, as cyber risk liabilities increase, so too does liability for manufacturers, suppliers and providers.
The General Risk of Increasing Digitalization
Take, for example, liabilities surrounding cyber security and the increasing digitalization of society: liability and litigation is becoming more and more complex and technical, especially as data protection rules become stricter and carry stiffer penalties in response to governments trying to bolster cyber security and protect privacy. An accident no longer involves just two people, but manufacturers, software providers, and other third parties, all requiring that insurance claims handlers and other experts understand specific algorithms involved in order to determine the cause of accidents.
Let’s take a look at another emerging technology and how it could become a major driver of liability and insurance claims in the years to come: 3D printing. This technology is expected to completely change manufacturing, growing from a market estimated at around $9 billion today to a potential global value of $640 billion.
While it has the potential to make businesses significantly operationally faster, more widespread use of the technology also introduces new complexity into the supply chain. Internet sales platforms, product designers, and software providers all bring their own particular liability into the equation, which raises new issues and questions as to what happens in the event of a product defect.
When it comes to 3D printing, examples of new potential liabilities and third party questions include:
- Whether the 3D design itself, and the designer (if the design can be considered a “product” covered under the law);
- Who has a duty to warn about any potential unsafe products? Does this include operators of internet sales platforms?
- Is the software itself considered a “product” within the confines of the law? If so, are software manufacturers properly covered for product liability?
- What about personalized products? How do they figure into product testing and protection against product defects/liability?
Do Not Leave Yourself Vulnerable: Contact Our Florida Corporate Liability Attorneys
It becomes clear that any companies that deal with these types of technologies need to constantly test their own risk management processes in order to ensure that they are up-to-date and covered. The introduction of any new update could leave a company, manufacturer, or even insurer completely vulnerable to a slew of new litigation.
If you are concerned about the potential repercussions of new technology in the field of business or insurance, contact our Tampa business attorneys at HD Law Partners today. We practice in a number of these areas—including business law, business insurance law, corporate law, insurance defense, and product liability, and we are here to help.