Life science and biotechnology companies face particular risks while operating their business. Between bodily injury claims during a clinical trial or interruptions during manufacturing, finding the right biotech insurance can feel daunting at best. But not to worry, we’ve compiled a complete guide on biotech insurance and exactly what coverage you need right now.

What is biotech coverage?

Because biotech businesses use fragile and expensive equipment while handling hazardous materials, they need a more nuanced approach to insurance coverage. Life sciences insurance coverage combines multiple commercial policies tailored to protecting these businesses, including commercial general liability, business owner protection (BOP), directors and officers coverage (D&O), errors and omissions (E&O), and more. This mix of policies protects your commercial property and assets, your employees, and your products from potential lawsuits.

What kind of coverage do I need for my life sciences business?

What specific type of insurance your life sciences company requires will vary from business to business, but generally you will want to be sure you have the following coverage:

Commercial general liability
Product liability
Commercial property and casualty
Cyber crime
Employee practices liability insurance (EPLI)
Fiduciary responsibility
Worker’s compensation
Errors and omissions (E&O)
Directors and officers (D&O)

Does my business need biotechnology coverage?

If your business is in any of the following industries, you will need to have specialized biotech and life sciences coverage:

Pharmaceutical testing and production
Medical equipment testing and manufacturing
Any company performing clinical trials
Biochemistry labs
Healthcare IT and software developers
Medical research firms
And more.

Also, if you are looking to expand your business and bring on investors, many of them will require proof of adequate coverage before agreeing to invest. Having comprehensive coverage secures their investment and makes your company more appealing to other potential investors.

My company performs clinical trials. Do we need specialized insurance?

Yes, companies performing clinical trials will need to have clinical trial insurance. This insurance product specifically protects against litigation in the case of accidental injury, both negligent and non-negligent, to a participant during the course of a clinical trial. Your company’s defense costs and any settlements or judgements will be covered.


What would happen to your business if valuable samples were improperly stored and spoiled over the weekend?

Does your current coverage protect your computer and data systems from the repercussions of a cyber attack?

Does your current risk management portfolio show you’re ready to begin reaching out to investors?

If you don’t know the answers to all of these questions, that’s okay. The commercial insurance advisors at JAISIN have years of experience working with biotech and life science companies. They will help you analyze your current risk management strategy, show you any potential weaknesses, and help you maneuver through the insurance marketplace for the best coverage for your company.

Click or call JAISIN Insurance Solutions today and chat with one of our commercial insurance advisors. While you’re on the phone with us, ask about a quote today!

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