In an industry predicated on stability and predictability, new industries and technologies test industry tolerances and procedures. When loss occurs, policyholders in new or evolving industries often discover—by chance—gaps in the coverage offered by their legacy products, leading to costly disputes with their insurers. For example, 3D printing has evolved from emerging risk to manufacturing staple. As the industry grows however, it faces increased risk exposures including professional liability, products liability, workers’ compensation and employers liability, business interruption and supply chain risks, intellectual property challenges, and, like all businesses, an increasing cyberrisk. However, most traditional or “legacy” insurance products fail to provide sufficient coverage for these risk exposures vis-à-vis the 3D printing industry, just as they fail to adequately protect businesses in other emerging industries that, along with their concomitant risks, simply did not exist when the legacy insurance products covering them were formulated.
Another example subject to similar coverage challenges involves the “sharing economy,” such as ridesharing or home-sharing services. Here, too, policyholders and additional insureds face significant coverage issues and gaps in coverage as their risk profiles grow and evolve.
