Insurers’ role in losses caused by malfunctioning technology

One of the major issues facing the law in an age of autonomous technology is the question of who is liable for damage caused by a machine or artificial intelligence either by physical injury or the failure of a contract. Insurers will have a major role to play. If a machine such as a driverless car causes damage or injury to third parties because of a defect that the vehicle owner could not possibly have known about (so that they are not negligent) who is liable for the damages? The third party cannot be left with a claim against the designer or manufacturer of the machine because product liability is impossible or expensive to prove. The only practical solution is for the person operating the machine or relying on the artificial intelligence to have compulsory insurance and personal liability if the insurance is not in place. Similar issues arise if an autonomously generated contract turns out to be void or if there is a breach of contract by the technology (hard or soft) that…

Read more detail on Recent Insurance Law posts –

This entry was posted in Insurance and tagged , , , , , . Bookmark the permalink.

Leave a Reply