Research and development companies dealing in various fields, such as drug development, medical device development, consultants, and CROs, are exposed to lawsuits for financial damages and may even owe direct and indirect physical damages due to their activities.
What are the most important insurances for research and development companies?
Professional Liability Insurance – As part of the provision of services in the research and development phase, mistakes may cause various damages, such as a delay in development. In addition, a mistake at the critical stage of development may cause future damage. Therefore, it is important to have professional liability insurance already at this early stage.
Directors & Officers Liability Insurance (D&O) – As part of the activity, the research and development companies, their officers and directors, who manage employees, raise funds, and assume various obligations, are exposed to the risks of lawsuits and various regulatory investigations. The insurance is designed to help them reduce their personal risk and operate under the best conditions to maximize the company’s profits.
Product and General Liability Insurance – Research and development companies are exposed today to various tort claims as a result of the use of their product or their business activities. Therefore, it is highly recommended that they take out product liability insurance and third-party insurance, which will protect them from the various tort claims that may be filed against them, whether damage to a person or property.
Cyber insurance – Comprehensive cyber coverage for the company and third parties that protect against cyber incidents, etc.