As a standalone industry, the life sciences have a set of unique characteristics when it comes to the many strands involved. From a high-volume workforce and an ever-evolving regulatory infrastructure to hazardous working conditions, there are countless risks facing businesses operating within the sector. To safeguard against such threats and offer peace of mind, life science insurance is an absolute necessity and in this article, we take a look at how it works.
What purpose does life science insurance serve?
Like any insurance policy, life science insurance coverage is designed to offer protection against sector-specific risks.
The difference with this particular type of cover is that it needs to be tailored in a targeted way to suit the business in question. When it comes to life science insurance, a bespoke policy is vital to cover all eventualities that could crop up across the various strands of the industry.
With an estimated workforce of more than 50,000 people across pharma, biotechnology and medical devices in Ireland alone, combined with the fact that many of the world’s most prescribed drugs are manufactured in this country, there is significant scope for detrimental mistakes and big economic losses.
Having a comprehensive life science insurance policy in place can help to minimise both financial and reputational damage.
What type of company is covered by life science insurance?
Businesses operating within the life sciences industry that are covered by life science insurance typically include:
- Biotechnology firms
- Pharmaceutical companies
- Medical device manufacturers and distributors
- Clinical research centres
- Medical product wholesalers
Each of these companies has a unique risk profile that correlates with the need for expertly tailored cover, as provided by a highly personalised life science insurance policy.
What risks are covered by a life science insurance policy?
Companies operating within the life sciences sector face a variety of unique challenges that require the type of specialised insurance coverage that only a life sciences policy can offer.
For example, conducting clinical trials is an essential part of developing new medical treatments and devices. However, these trials can be a risky process that poses serious threats in legal terms. Life science insurance offers protection if legal action is taken against a particular company.
Another example is the risk of product recalls. If a medical device or treatment is found to be defective, it can result in a costly recall. A thorough policy can provide coverage for such a scenario, including the costs associated with notifying patients and recalling the product.
In addition to these risks, companies operating within the life sciences sector are also vulnerable to cyber risks. Cyber attacks can result in data breaches and theft of intellectual property, which can be devastating to such businesses. Life science insurance can provide coverage for cyber risks, including data breach response costs and liability claims.
Ensure your business is fully covered today with an insurance policy from ERM Financial Services
ERM Financial Services understand the unique risks and challenges faced by life science companies and can provide customised insurance coverage to meet their specific needs. We are committed to helping our clients protect their businesses while they focus on advancing the frontiers of science.
By getting comprehensive life science insurance coverage with us, companies can focus on what they do best – developing innovative medical treatments and technologies that improve lives.
If you’re a life science company looking for comprehensive insurance coverage, ERM Financial Services can help, so get in touch today for a quote and to learn more about our insurance offerings.
Make sure to also check out our blog and resources for the latest industry insights and further information on the insurance services we offer.