A Breakdown of Life Sciences Insurance and the Key Coverages

A Breakdown of Life Sciences Insurance and the Key Coverages

A Breakdown of Life Sciences Insurance and the Key Coverages

27 May 2020

A breakdown of Life Sciences, Clinical Trials and the Key Coverages detailing what life sciences is, the three different clases of this policy.

Life sciences insurance is a highly advanced and progressive industry that shows consistent developmental innovations from year to year and more recently with COVID-19, from month to month. The spread of COVID-19 throughout the world has consequentially caused profound disturbances and interruption to every community in the world, including patients, clinicians and businesses. Life science companies and institutes are at the forefront of developing, supplying and distributing critically required medical and ancillary products that can help affected patients. Vitally, the industry is also racing to find treatments and vaccines for COVID-19 which could provide the pathway for the world to return normality, but like most other businesses are being heavily interrupted by fears of keeping staff safe. As a result, the clinical and developmental engine has ironically struggled to match the pace of what’s required to find a long-term solution for the pandemic.

What are Life Sciences policies and how they play their part with COVID-19

Life sciences companies, like any other business have a variety of exposures that they need to take into consideration. The importance of the aspects of coverage is highlighted by the type of work that the Life sciences company is involved with.

Below we explore 3 classes within the Life Sciences industry:

  • Research & Development

  • Medical Devices & Products

  • Pharmaceuticals

Different insurers offer variances of coverage and so, we look at some of the key exposures within the aforementioned classes:

Clinical Trials (CT): CT are a vital phase within the R&D cycle. The policy responds to in the event that a study subject is injured during the trial and responds to local legislative guidelines. Product Liability: Policies provide protection against unintended bodily injury and property damage resulting out of any material, product, laboratory apparatus used for research. Professional Indemnity: Cover for any errors, omissions, negligence or accidents that result in a financial loss from the services rendered. Stock Cover: Policy will respond to cover the accidental damage to any stock (whilst in registered sites or in transit to registered sites).Product recall: In rare circumstances, a product can be later found to be compromised making them unfit for use, sale or distribution. Product recall protects against the costs associated with recalling these faulty products from the market. Business Interruption: Cover for insured interruptions. Legal Expenses: Policy provides legal expense cover to cover legal costs that might incurred while pursuing disputes or receiving advice. Insurers can also include a host of other coverages that may be beneficial to Life Sciences companies. The type of coverage offered may also be a requirement of local legislation or as part of a contract that the Life Sciences company is working under and must adhere to.

Other coverages include:

  • Cyber Liability and security

  • Computer Breakdown

  • Cancellation of Event

  • Abduction and Extortion

  • Confiscation and Deprivation

  • R&D Property

  • Change in Controlled Environment

  • Condemnation of Undamaged Stock

  • Failure to Meet Specifications

  • Machinery Breakdown

  • Patent Defences

  • Malicious tampering of product

At Servca, we use our niche healthcare expertise and diverse insurance market relationships to provide our clients a variety in policy structures. Our aim and intent is to build policies to the exact requirement and specification of our clients. As a specialist in Healthcare Insurance, we can also provide dedicated reviews of your current insurance arrangements and highlight any existing exposures that are in place. To learn more about our Life Sciences products and solutions, get in touch with our Healthcare team.

Life sciences insurance is a highly advanced and progressive industry that shows consistent developmental innovations from year to year and more recently with COVID-19, from month to month. The spread of COVID-19 throughout the world has consequentially caused profound disturbances and interruption to every community in the world, including patients, clinicians and businesses. Life science companies and institutes are at the forefront of developing, supplying and distributing critically required medical and ancillary products that can help affected patients. Vitally, the industry is also racing to find treatments and vaccines for COVID-19 which could provide the pathway for the world to return normality, but like most other businesses are being heavily interrupted by fears of keeping staff safe. As a result, the clinical and developmental engine has ironically struggled to match the pace of what’s required to find a long-term solution for the pandemic.

What are Life Sciences policies and how they play their part with COVID-19

Life sciences companies, like any other business have a variety of exposures that they need to take into consideration. The importance of the aspects of coverage is highlighted by the type of work that the Life sciences company is involved with.

Below we explore 3 classes within the Life Sciences industry:

  • Research & Development

  • Medical Devices & Products

  • Pharmaceuticals

Different insurers offer variances of coverage and so, we look at some of the key exposures within the aforementioned classes:

Clinical Trials (CT): CT are a vital phase within the R&D cycle. The policy responds to in the event that a study subject is injured during the trial and responds to local legislative guidelines. Product Liability: Policies provide protection against unintended bodily injury and property damage resulting out of any material, product, laboratory apparatus used for research. Professional Indemnity: Cover for any errors, omissions, negligence or accidents that result in a financial loss from the services rendered. Stock Cover: Policy will respond to cover the accidental damage to any stock (whilst in registered sites or in transit to registered sites).Product recall: In rare circumstances, a product can be later found to be compromised making them unfit for use, sale or distribution. Product recall protects against the costs associated with recalling these faulty products from the market. Business Interruption: Cover for insured interruptions. Legal Expenses: Policy provides legal expense cover to cover legal costs that might incurred while pursuing disputes or receiving advice. Insurers can also include a host of other coverages that may be beneficial to Life Sciences companies. The type of coverage offered may also be a requirement of local legislation or as part of a contract that the Life Sciences company is working under and must adhere to.

Other coverages include:

  • Cyber Liability and security

  • Computer Breakdown

  • Cancellation of Event

  • Abduction and Extortion

  • Confiscation and Deprivation

  • R&D Property

  • Change in Controlled Environment

  • Condemnation of Undamaged Stock

  • Failure to Meet Specifications

  • Machinery Breakdown

  • Patent Defences

  • Malicious tampering of product

At Servca, we use our niche healthcare expertise and diverse insurance market relationships to provide our clients a variety in policy structures. Our aim and intent is to build policies to the exact requirement and specification of our clients. As a specialist in Healthcare Insurance, we can also provide dedicated reviews of your current insurance arrangements and highlight any existing exposures that are in place. To learn more about our Life Sciences products and solutions, get in touch with our Healthcare team.

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48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies