Opportunities Abound in Life Sciences

The Life Sciences and Nutraceutical industries must carefully address the unique exposures they face in relation to their service, development, manufacturing, sale, distribution, and warranty of products. Clinical trials, pharmaceuticals, medical devices, biotechnology, and dietary supplements all have unique liability challenges that need customized and comprehensive coverages.


Products Liability

Product liability is one of the most common coverages in life science.  When pharmaceutical drugs or medical devices are released into the market, they are subject to regulatory approval and testing. Even with rigorous review and testing, there are times when products can cause harm.  The ‘products liability’ coverage provides the insured protection for injury to the consumer and any financial loss the insured may receive.


Clinical Trials

For a new drug or product to be released, many companies must go through the process of conducting clinical trials. Clinical trials provide controlled testing of new pharmaceutical drugs or healthcare products before being mass produced for the public.  Clinical trials are a critical component of the research and development process and can be expensive and time-consuming.  ‘Clinical Trials’ coverage provides compensation if the trial participant sustains an injury due to participation in the clinical study.

Though the life sciences space is disciplined, there are two additional risks that should be on the forefront of one’s mind for loss prevention – Intellectual Property & Cyber Liability.


Intellectual Property & Cyber Liability Insurance

Intellectual property and cyber risks are growing concerns in the life sciences industry.  Companies invest significant resources into development, and they rely on their intellectual property rights to protect their investments. If competitors infringe on these rights it can result in serious financial losses.  Additionally, these companies collect and store a significant amount of sensitive data, including protected health information.  Top markets have this coverage packaged with their primary coverage if it falls within their business operations.

Companies in this space are unique in exposure and each need specific coverages tailored to their risks. Generalized coverages provided under separate policies can often lead to gaps in coverage. This is why coverage specific to the life sciences space is well-equipped to cover these types of risks. The life sciences industry is always changing and it is imperative to have coverage that changes with it.


About the Author

Stephen Maniscalco is a Broker with Founders Professional, that focuses on healthcare, life sciences, management and cyber liability insurance. He can be reached directly at Stephen.Maniscalco@founderspro.com.