Liability and the Internet of Things

By Dave Bradford on January 14, 2014

internet-product-liabilityThe physical world is rapidly becoming an information system as physical objects embedded with sensors are linked in vast computer networks. But what happens in the “Internet of Things” when things go wrong? Who is liable, and what insurance coverage responds?

Hunton & Williams attorneys Lon Berk and Paul Moura, in a recent Law360 article, argue that traditional product liability coverage should apply to defective products, even if the cause of the malfunction is a computer algorithm run from a distance.

But as they note:

  new technologies create new risks, and new risks create the possibility of coverage disputes.

We’re not sure we would bet our company on traditional product liability wording that is still largely untested in the era of the Internet of Things.

What do you think?

Dave Bradford is Chief Strategy Officer and Director of Strategic Partnership Development at Advisen. Dave is also a founder of Advisen. As Chief Strategy Officer, Dave monitors market trends and advises the CEO and fellow Executive Committee members on strategic developments that impact our ability to fully serve our clients. As Director of Strategic Partnership Development, he cultivates and manages relationships with companies with complementary products and services. Contact Dave at [email protected].