Robotics and automation can improve consistency, efficiency and workplace safety, but they do not remove risk; they change where risk sits. Across Ireland, more organisations are adopting AI to improve efficiency and productivity5.
Tasks once carried out manually may now rely on robotic equipment or automated systems, reducing some employee injury risks while creating new exposures linked to machinery safety and cyber security.
Irish employers have duties under the Safety, Health and Welfare at Work Act 20056 to ensure machinery is designed, provided and maintained so that it is safe and without risk to health, with machinery use supported by appropriate risk assessments. The incoming EU Machinery Regulation7, legally binding from the 20th of January 2027, is also relevant as it addresses safety risks linked to advanced technologies and introduces industrial security requirements to ensure accidental or intentional security threats do not compromise machine safety functions.
This is particularly important where production equipment is networked. A cyber incident affecting operational technology, production controls or safety systems could lead to property damage, bodily injury, product defects or significant business interruption.
For this reason, automation should prompt a review of key insurance areas, including employers’ liability, public and products liability, machinery breakdown, property damage, business interruption and cyber insurance. The right cover will depend on each manufacturer’s operations and equipment, particularly where production relies on a small number of critical systems or machines.
Business interruption: the hidden risk in automated manufacturing
Ireland’s manufacturing sector continues to grow and now employs more than 240,000 people8. With growth comes investment, and with investment often comes change.
As businesses invest in automation, one of the biggest insurance risks is dependency. A production line may become faster and more efficient, but it may also rely on a small number of machines or systems. If key equipment fails or there is a cyber incident, the impact can be significant. Manufacturers should consider how long repairs or replacements would take, whether spare parts are available, whether specialist engineers are needed and whether production could continue elsewhere.
This makes business interruption cover essential. Sums insured, indemnity periods and declared values should reflect the realities of the operation. In an automated environment, resilience is just as important as efficiency, and insurers will often look more favourably on businesses with clear contingency planning.
While automation is changing how manufacturers produce goods, sustainability is changing how they power, source and manage their operations.
Sustainability and insurance risk
Sustainability was another key theme at the event, as Irish manufacturers face increasing pressure to reduce emissions, minimise waste and improve energy efficiency. These initiatives can reduce costs, improve performance and support long-term resilience, but they should still be viewed through a risk management lens.
Changes to energy systems, materials, production processes or waste management can affect a manufacturer’s insurance profile. For example, the installation of solar panels may affect fire and roof risks. Battery storage systems may introduce electrical and thermal hazards. EV charging points may change property and liability exposures. New materials or recycled inputs may create additional product liability considerations.
Ireland’s Circular Economy Strategy 2026–20289 places circularity at the centre of economic competitiveness and sustainability. For manufacturers, this presents real opportunity. But it also reinforces the need to integrate sustainability into risk management, insurance cover review and long-term business planning.
The same principle applies across the manufacturing sector - where operations change, risk management and insurance should be reviewed too.
Practical risk management for Irish manufacturers
As robotics, automation and sustainability become more embedded in manufacturing, businesses should review their insurance cover and risk management approach.
Practical steps include:
- keeping machinery risk assessments up to date
- documenting employee training
- reviewing maintenance schedules
- assessing cyber exposure in operational technology
- checking business interruption sums insured and indemnity periods
- disclose material changes to insurers
Early engagement with insurers is important. When changes are made to machinery, production processes or energy systems, early advice can help identify coverage gaps before they become costly problems.
An evolving workplace needs a changing insurance conversation
Robotics and automation are helping manufacturers become more productive, while sustainability is reshaping how businesses think about energy, materials, waste and long-term resilience.
Both are necessary. Both create opportunities. But both also require careful risk management.
As Ireland’s manufacturing workplaces become more automated, connected and sustainable, organisations need to review their commercial insurance programmes and ensure their cover continues to reflect the way their business operates.