Assessing the risk of robots in the age of automation

July 26, 2023

Robot machinery at work.
Share on LinkedIn Share on Facebook Share on X

Emerging technologies and robotic assemblies are paving the way for automation to become a meaningful part of life. Efficiency, safety, productivity and convenience are a few reasons behind the increased dependency on such technologies. From a financial perspective, it makes sense: Machines don’t come down with the flu, they don’t get injured or take vacations, and they aren’t able to make lapses of judgement. However, as long as humans are involved in the design, maintenance, repair and system updates, utilizing robotic assemblies is far from risk free.

Popular robot technologies

In 1969, robotics pioneer Victor Scheinman invented the “Stanford arm” — a six-axis all-electrical articulated robot that contained rotary joints. It demonstrated the potential for robots to perform complex tasks like welding, packaging and assembly. Articulated robots are designed to mimic the functionality of a human arm and possess 2 to 10 rotary joints — each additional joint enabling a greater degree of motion.

Picture this: two robots that resemble machine arms are mounted side-by-side at a salad bar preparing a Mediterranean salad. Chef Ilan Barniv, originally a baker from Jerusalem, is teaching the robots to turn his recipes into entrees. The robots refine their skills by learning from chef Barniv. As each robot gains additional knowledge, it is shared with the second robot, all of which will eventually be shared with future robots deployed in the chef’s restaurant chain. In fact, this is a real-life scene, happening at a restaurant called Bonapita in West Roxbury, MA; both robots are part of a new generation of smart robots that use artificial intelligence to continuously learn, adapt and improve performance.

Other emerging technologies are already commonplace in some environments. On a college campus, for example, you may see six-wheeled food delivery robots, known as autonomous mobile robots (AMRs). AMRs make decisions in real-time by using sensors and cameras that feed it information about its surroundings. Another technology, automated guide vehicles (AGVs), are the robots that race from aisle to aisle to fulfill orders in an Amazon warehouse. Finally, collaborative robots (cobots), function alongside or directly with humans and were designed to reduce manual, dangerous and strenuous tasks in human workflow.

Industry growth

The robotics market is growing and is likely to continue to at an exponential rate, according to GlobalData, a London-based data analytics company. A GlobalData report states that the market generated $45.3 billion in 2020, and the industry is predicted to grow at a compound annual growth rate of 28% between 2021 and 2030. By 2030, the industry is expected to generate more than $500 billion.

The industry can be divided into two main parts — industrial robots and service robots. Service robots assist humans by undertaking tasks such as explosive handling, firefighting, delivery in hospitals, etc.. Although the potential for the service market side was found to be larger than the other, industrial robots are predicted to be adopted and grow faster over the next decade.

Robot application hazards

According to a manual published by the Occupational Safety and Health Administration (OSHA), studies indicate that many robot accidents occur during assembly, installation and testing, where workers are first exposed to the robot application — not during normal operating conditions.

OSHA identified several hazards robots pose to humans. Control errors, for one, are faults within the control system that can create erratic behavior or an increase in the machine’s hazardous energy. Mechanical hazards can also result in unexpected operation, making the robot unpredictable and dangerous. Robot power systems can be disrupted and lead to malfunctions, which increases the risk of electrical shocks or fires.

Additional risks include improper installation, environmental causes or interference that can influence a robot’s performance, unauthorized access in a safeguarded area, or a wide range of human errors, such as faulty programming, interfacing or maintenance, among others.

Risk examples

In one instance, in 2018, a robot built by food delivery service Kiwi burst into flames due to human error. A faulty battery had been inserted into the robot, causing thermal runaway — one of the primary risks associated with lithium-ion batteries. If a battery’s internal temperature exceeds a certain limit, thermal runway occurs, which can destroy the battery or start a fire.

A large-scale online grocer in Andover, UK, had invested heavily in automation to speed up home delivery. In 2019, a fire occurred in their warehouse when a fault in a battery charging unit caused a robot to catch fire. The fire burned for four days and destroyed the site. Two years later, the same site caught fire again due to a malfunction that caused three robots to collide.

Finally, in August 2021, General Motors announced it would recall every Chevrolet Bolt it had ever manufactured due to a string of fires that had affected the Bolt models. The company traced the problem to two defects occurring in the cars’ batteries, that may have been caused by a misaligned factory assembly robot.

Subrogation and remediation

In instances such as when a battery malfunctions and spontaneously combusts, the battery charger malfunctions, robots randomly collide, or an assembly robot was misaligned or incorrectly programmed, subrogation is important to consider. Securing and safeguarding evidence is critical.

Remediation is also important to bear in mind. Businesses that incorporate robots are typically large, and income loss is often substantial. This requires assembling a team of environmental experts, building consultants and equipment engineers to ensure proper recovery protocols until the facility is fully recovered.

Learn more > visit efiglobal.com or check out an expanded version of this article here.

Navigating water damage after a pipe bursts

March 17, 2022

Share on LinkedIn Share on Facebook Share on X

By Steven Grutzmacher, general adjuster

For many public sector employees — including those with schools, municipalities, and utility districts — managing property losses may be just one responsibility of a much broader role.

Imagine being a newly appointed school superintendent. Upon entering the school building on a Monday morning, you find standing water in two classrooms, the band room, and the computer lab — with notable ceiling damage. It doesn’t take long to notice that personal computer stations, band instruments, textbooks, and furniture have suffered notable water damage.

Closer inspection reveals water pipes burst sometime over the weekend — leaving spaces unusable and valuable assets damaged or destroyed. It can be challenging to determine the cause of loss, assess the extent of damage, and work with contractors to ensure repairs and restoration are completed on a timely basis in accordance with the insurance policy. That’s where Sedgwick comes in.

Mitigate the immediate risk

Upon discovering property damage — whether from a burst water pipe, fire, or weather-related event — the first step is to address the risk and mitigate any further damage. In many cases, this will entail calling a remediation company to come out immediately to address the situation. In our school example, the remediation team addresses the broken water pipe, removes the water, and begins the drying process.

Report the loss

Once steps are taken to stop or mitigate the immediate risk, it is paramount to report the loss as soon as possible. This typically involves providing the schedule and memorandum of coverage. This ensures our loss adjusting team can arrive quickly and begin investigating to determine the origin of loss as well as the extent and scope of damage. In many instances, worn water pipes or newly installed water pipes are the culprit for the damage. In the case of the latter, our team checks for any signs of construction defect.

Minimize further damage

Ensuring that remediation is proceeding appropriately and that the proper number of vacuums, fans and other equipment are being utilized is essential. Contents that can be salvaged will be separated from the damaged equipment deemed a total loss. Luckily, there are companies who focus on restoring valuable works of art, the recovery of paper files and documents, and other specialized needs. Time is critical in such recovery efforts to minimize any further damage.

Determine next steps

The loss could be caused by a third party which introduces the potential for subrogation. This can arise due to faulty construction such as the improper installation of a sink, toilet, or roof. Again, proper investigation and documentation before repairs are made is essential. Testing for elements such asbestos, lead, or mold is needed prior to the reconstruction phase. Keep in mind, different jurisdictions have different requirements and statutes of limitations.

Once testing requirements are satisfied and a contractor is selected, the reconstruction and repair phase will begin. The number one objective is to restore and return operations to normal as quickly as possible. This again underscores the importance around timeliness of loss reporting. The sooner all parties are notified; the sooner restoration and repairs can begin.

For organizations that experience personnel turnover, be certain to designate an individual who is responsible for managing property losses and who will provide notification in the event of a loss. While managing property losses might be one facet of an individual’s responsibility, it is one that can have a significant impact on the organization’s overall ability to operate and perform. At Sedgwick, our property team specializes in these types of loss situations and stands ready to provide the expertise and support you need. For more information, visit our website or contact me at [email protected].