Harnessing the Wearable Technology Revolution

Accompanying the tremendous upside potential of wearable technology devices are risks that must be managed. Companies that understand these evolving risks will be better positioned to protect themselves from liability, should devices go awry.

Understanding risks now and in the future

Broadly speaking, wearable technology creates risks for three types of companies: technology companies that develop, manufacture and distribute wearable devices; technology companies that act as vendors or suppliers to wearable technology companies; and other companies that integrate wearable technology into their products.
Companies in the wearable technology market should understand these exposures:

Cyber risk
When an organization fails to properly secure the data held within its information systems, financial loss, business interruption or reputational damage can result.

Bodily injury
Should wearable devices ever fail, the device maker could be liable for bodily injury risk including damages from a resulting injury, illness or even death of a user or patient.

Technology professional indemnity
A company can be held liable for an economic loss from the failure of a device to work as intended due to an error, omission or negligent act.

Companies bear a responsibility to ensure that consumers and patients do not suffer injury, illness or death due to the use of their products. Safety features, data protection measures, effective contract risk management and good design decisions can all help companies reduce their exposures to some of the risks we see today. However, given the rapid pace of technological change, companies in the wearable technology market are unlikely to fully understand and eliminate their current or emerging exposures. They can help themselves by investigating insurance options designed to monitor and mitigate the risks of wearable technology today, as well as the risks on the horizon.

To read more and download the full whitepaper, click here.