Those that pioneer new life science solutions have a different risk profile.
You don’t know what you don’t know. This will come as no surprise to those that are trying to expand the horizons of knowledge in biotechnology and the life sciences. The entrepreneurial experience has always been about trying to find a new way to do business or a new way to deliver a product.
Liability
A life science company has liability that goes beyond the immediate policy term. Biotechnology firms are also at risk of government action or sanction by the FDA or other governmental entities. The professional liability exposure for infringement on the intellectual property of others, unknown errors, or omissions in the work that you undertake to produce a new device or treatment is significant. Most general liability policies exclude much of the coverage that is critical to those working on the leading edge of the life sciences.
Specialized Property
A property loss is devastating to any business but companies in the biotechnology or life sciences field are more exposed than most businesses. Laboratory environments, clean rooms, specialized storage equipment, spoilage, laboratory animals, research data are all exposed and the standard insurance policy will not cover a life science company’s true loss if there was a catastrophic event. The true exposure of a biotechnology firm is in the value of the lost work and the recovery time. Winters-Oliver can make sure you understand this exposure and help you plan accordingly.
Cyber Liability & Data Breach
Storing information in an electronic format allows for collaboration as well as the ability to do complex processing that is required in the life science arena. It also opens a business up to cyber-attacks and the loss of personally identifiable information, particularly when a company is doing clinical trials. Winters- Oliver understands this risk and can help arrange coverage for Network and Security Liability, Communications and Media Liability, Regulatory Defense, Crisis Management Expense, and Security Breach Remediation.
Directors and Officers Liability
Being funded by a venture capitalist or angel investor is the day most life science start-ups hope will come. But even the company that is bootstrapping its efforts needs the protection of a Directors and Officers Liability policy. Bringing on board members, even unpaid board members can be challenging if without Directors and Officers Liability insurance. Whether you are still in the pre-revenue stage or a mature company, Winters Oliver can help you understand this unique coverage and obtain the proper limits to protect investors, board members, and executives.
