Life science companies are exposed to various lawsuits. The main exposure of these companies is bodily injury that they may cause to third parties. Therefore, the various risks of the company must be identified, even before the start of the activity, and considered, both by appropriate insurance and by examining the commercial agreements.

What is cyber insurance?

The insurance, Protects the company from third-party claims because of a cyber incident. The insurance also protects the company’s damages because of loss of income, payment of ransom, initial response team, reporting expenses according to various regulations, expenses due to regulatory investigations, and more.

Life sciences companies that have bodily/property damage exposure because of a cyber incident, for example, digital health companies, should make sure that the cyber policy does not exclude bodily and property damage, or alternatively take out a combined policy, including cyber coverage, professional/product and general liability.


What does cyber insurance for life sciences companies include?

Cyber insurance is comprehensive insurance, which takes into account many issues related to possible attacks:

1. Beginning with the expenses involved in managing the attack event, which includes a large number of personnel and an extensive response team, use of various external services such as lawyers, IT and PR personnel, information recovery expenses, and more.

2. Of course, the insurance also covers the payment of the ransom that companies and businesses are forced to pay, without choice, to the attackers, as well as any extortion-related expenses involved in this.

3. Payment of fines that are insurable – sometimes, a cyber attack exposes problematic procedures of the company, including with regard to the preservation of information and the privacy of its customers and third parties, which exposes it to the payment of fines, for non-compliance with GDPR regulations for example. and, for legal expenses on regulatory investigations.

4. Cyber insurance for life sciences companies will also insure the companies against claims that may be filed against them.