3D printing is revolutionising manufacturing, but early adopters should beware of the associated risks. Richard Codd of Gallagher and Wayne Leech of Travelers Insurance, explain the pitfalls and how to avoid them.
3D printing is already changing the way we produce and deliver physical products. Products that formerly took weeks and months to design, prototype and manufacture, now take a matter of minutes.
With the advent of 3D printing, manufacturers enjoy a shorter time to market and lower cost base, giving them a significant advantage over competitors using traditional manufacturing methods. But as firms scramble to take the lead in the 3D printing race, a word of caution is in order. There are pitfalls along the way that threaten to derail their revenue forecasts unless they protect themselves.
What are the key risk categories for 3D printing?
As the technology continues to advance, so do the inherent risks. Everyone in the global supply chain should understand the risks and minimise them.
How can companies minimise their exposures?
Companies should consider the following steps to help minimise exposure to risk:
Any company involved in 3D printing should look at the following property damage and bodily injury risk mitigations:
A company can minimise their technology professional indemnity risk by implementing many of the previously highlighted suggestions. Contract practices can impact risk, and much of a company's exposure can be mitigated by protective language in its contract terms and conditions.
Companies should consider the following steps to help minimise exposure to cyber risks:
How can insurance respond to this risk?
To help protect against the aforementioned risks, the following insurance is available:
The manufacturing world is evolving for the better and the prospects of 3D printing are lucrative and rewarding for those willing to embrace change. These changes are not without associated risks, but with appropriate controls and correct insurance, a company willing to adopt 3D printing can prosper.
Richard Codd is a producer in the major risks practice at Gallagher and Wayne Leech is technology development underwriter at Travelers Insurance.
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