The life science industry faces many unique challenges, ranging from running successful clinical trials to researching cutting-edge technological solutions to medical problems.
Because of this, life science companies are exposed to a huge range of risks that regular business insurance policies simply aren’t equipped to deal with. They need specialised coverage that protects them from the specific risks they face – and that’s where life science insurance comes in.
In this guide, we’ll explain what life science insurance is, why you need it and what it can cover.
What is life science insurance?
Life science insurance is specialist protection for companies in the life sciences sector. It’s a more specialised type of technology insurance that matches the specific requirements of life sciences companies in a single policy.
Life sciences companies are involved in researching, developing and manufacturing products that improve the lives of living organisms. Some examples include pharmaceutical, bioscience and medical technology companies. Because of the unique nature of their work, life sciences companies face unusual risks in complex areas such as clinical trials, intellectual property and the loss of R&D materials.
Why do you need life science insurance?
If your company is in the life sciences sector, then you need specialist insurance for several reasons, including:
- To protect yourself from risks – Because life science companies face unique risks, they aren’t completely protected by regular business insurance. You might find it better to take out a specialist policy rather than run the risk of an insurer declining your claim.
- To provide reassurance – Having a robust insurance policy in place can give your stakeholders such as investors or clinical trial participants peace of mind.
- To win new business – It can also give future customers confidence that partnering with your business isn’t a risky decision. Some customers might even have certain requirements. For example, the NHS requires its medical equipment suppliers to have £5m in product and public liability insurance.
- To comply with the law – Some types of cover are legal requirements for your business, so you need to have them to operate.
The bottom line
Protecting your life science company against all the different risks it faces can seem overwhelming but finding the right specialist life science insurance policy can give you peace of mind. Understanding what life science insurance is, why you might need it and what it covers is the first step to finding the right policy – and, hopefully, this guide has helped you to that end.