The biotechnology industry arose in the 1970s to enhance the quality of life on earth by servicing industrial, agricultural, and medical markets. The work being done in this industry results in new processes and products for various industries and may influence many aspects of the average person’s life, particularly their health. Biotech is one of the fastest-growing industries in the United States. In fact, it is projected to reach $3.44 trillion in profits by 2030. Because it has such a large market share and involves some dangerous innovation, the Biotech industry is full of risks. Today, we are shining the spotlight on the complex needs of biotech companies. Keep reading to learn more about some of the recommended policies and protections for biotech!
Risk for Biotech Companies
Research and development, though essential to the operation, can be extremely risky. Biotech companies use very expensive and fragile equipment in order to carry out their biomolecular processes. Research is typically very complex and requires strict, step-by-step processes. Additionally, the work of Biotech companies can be seen as controversial and even dangerous to those who do not understand the field. On top of an already complex research and development process, biotech companies have to deal with many strict regulations. Fragile materials, damaged materials, human error, misplaced items, ill-followed procedures, or everyday accidents can cause immense damage to the company.
Clinical trials, which are used by many biotech companies to test new products, also create risk. In order for new products to be released, the products must size up against clinical trials. Mutations, troubling results, or participant injuries can shut down an operation. Biotech companies need to protect themselves from the risks in their industry.
Recommended Policies for Biotech Companies
There are several insurance policies that biotech companies should consider in order to reduce their risk, sustain growth, and continue to secure funding.
General Liability Insurance
A general liability policy is a good idea for every company, no matter the industry. This policy provides broad protection against some of the most fundamental risks a biotech company may face. General liability insurance will cover claims involving bodily injuries and property damage caused by the company’s products or operations.
Workers’ Compensation Insurance
Workers’ compensation is one of the greatest expenses employers face. In the biotech industry, employees work with hazardous materials and dangerous equipment regularly. A solid workers’ compensation policy covers medical expenses, death benefits, and lost wages. This type of policy allows biotech companies to protect their employees and continue to run smoothly.
Cyber Liability Insurance
In an increasingly digital world, every company is almost required to have an online presence. A cyber liability insurance policy protects biotech companies from third-party lawsuits relating to online activities, like phishing scams and data breaches. This policy offers recovery benefits, supports data restoration, and reimbursement for income lost.
Directors and Officers Insurance
Biotech companies are under intense scrutiny by a variety of regulatory organizations. Regulatory issues are very serious and can lead to litigation. A Directors and Officers Insurance policy protects a company’s directors and officers in lawsuits that allege a breach of trust in the company. A good Directors and Officers Insurance policy protects your leaders and covers defense, settlement, and judgment costs.
Clinical Trials Insurance
Clinical trials are an essential aspect of research and development for biotech companies. Because they are performed on real human subjects, the regulations and procedures are very rigorous. Even with these regulations and policies, accidents still happen. A Clinical Trials Insurance policy offers protection to companies that conduct clinical trials for defense costs and costs associated with settlement.
Commercial Property Insurance
The physical property owned by a biotech company is extremely important to its work. With the expensive equipment and rare raw materials, the property is very unique and irreplaceable. Commercial Property Insurance protects against costs associated with severe storms, vandalism, theft, and other perils that may affect a property. Some Commercial Property Insurance policies may include Business Interruption coverage, which allows the business to stay afloat if it cannot be open. This may include equipment damage, flooding, or disruption of utility services.
Product Liability Insurance
The availability of a biotech company’s product increases its risk. Biotech companies may be liable for product defects at any part of the production process, from creation to distribution to reselling. Product Liability Insurance protects biotech companies against the costs of third-party lawsuits claiming bodily injury or property damage.
In order to pick the best insurance policies for your biotech company, consult expert insurance providers, like those at Post Insurance, who are familiar with the industry and put together the right coverage for your company’s needs.