Insurance Litigation Risk in Autonomous Equipment Leasing Agreements

Insurance Litigation Risk in Autonomous Equipment Leasing Agreements It started with a bulldozer that didn’t need a driver. Now we’ve got forklifts navigating warehouses on their own, harvesters scanning crops with infrared sensors, and drones refueling themselves between jobs. Welcome to the age of AI-operated equipment — where machines are smart, but contracts often aren’t. A leasing client once told me, “I signed a lease on a smart excavator and ended up needing a lawyer before I even got the keys.” At the time, I laughed. Now, I see it all the time. This post explores the litigation risks and insurance headaches that come with leasing autonomous machines — especially when the fine print wasn't ready for firmware updates and deep learning glitches. 📌 Table of Contents 1. Why Autonomous Equipment Leases Are a Legal Minefield 2. Who’s Liable When the Machine Thinks for Itself? 3. Insurability and Exclusion Clauses in the Era of AI 4. Litigation Patte...