Since 2020, the biotechnology industry has been in an unprecedented surge and boom. The coronavirus managed to arouse a renewed and increased interest in investments and the development of the field, and more and more people realized how important it is to help innovation and the development of various medical and therapeutic products when we witness reality-changing inventions, just like the revolutionary corona vaccine, which saved many lives in the world.
Amidst the innovation and breaking of boundaries, which the field has done in recent years, there are also quite a few risks, which are taken on by the biotech companies, who are sometimes forced to be pioneers in a certain field and to try to help develop revolutionary treatments or medicines, which will provide a response to many patients in the world.
Those medical developments sometimes involve R&D that may involve risk for the people participating in the drug trial. For example, sometimes there are allegations of falsification of trial results or data on the part of the pharmaceutical companies, sometimes the development of the drug, including danger to valuable equipment and property, and more.
Our special insurance program for pharmaceutical companies consists of several main insurance chapters:
Directors & Officers Liability Insurance (D&O) – The senior officials in many companies make critical and very complex decisions regarding the continuation of a drug trial and progress in the development and marketing stages. As part of those decisions, they assume a considerable risk and are exposed to claims of professional failure. The insurance allows them to receive financial compensation for legal proceedings and various regulators, which are initiated against them for decisions made during the company’s day-to-day business management, including lawsuits, investigations, judgments against them, and more.
Property Insurance – The laboratories and offices of pharmaceutical and biotech companies, in general, include quite a few different devices, systems, and platforms that help them in research and development, marketing, and the promotion of products and services. These are exposed to the dangers of fires, floods, power outages, thefts, and more, which may impair their functioning. Property insurance allows them to be compensated for the damage caused to that equipment.
Product Liability Insurance – Helps to insure the companies for claims filed against them due to defects in the product or service. Whether they are producers, distributors, or marketers, they may be exposed to significant claims.
CGL– Insurance for the business allows the pharmaceutical companies to benefit from insurance coverage, also for claims filed against them by third parties from abroad, including various negligence claims, bodily injury, or property damage.
Product Recall Insurance – In recent years, we have seen more and more companies reporting product recalls due to defects discovered in them, in a process that may cause severe financial damage to the company, various lawsuits filed against them, and damage to reputation and good name. Recall insurance helps to compensate the companies for the entire management of the legal process, the settlement agreements that will be signed, the public relations expenses during this period, and more.