One of the most significant challenges is the unbundling of hardware and software. Caterpillar doesn’t just sell autonomous-ready machines – it sells retrofit systems separately, including hardware, software, and recurring licensing. This transforms a one-time equipment sale into an ongoing services model, effectively turning Caterpillar into both a manufacturer and a technology provider. For insurers, this layered service model introduces a new set of liabilities: software failures, remote-control breakdowns, cybersecurity breaches, and service-level disputes.