The biotechnology industry in the United States consists of firms engaged in conducting research and experiments that result in new processes, prototypes or products for use in various industries. Biotechnology companies study microorganisms and cellular biomolecular processes to develop or alter living or nonliving materials.
These are examples of activities biotech companies may perform:
Biotechnology companies may work in the life sciences field; veterinary testing services; physical, chemical or other testing services; pharmaceutical and vaccine manufacturing; and medical device manufacturing.
Firms in the biotech industry face numerous and complex risks, many of which are out of your control.
Biotechnology companies vary significantly; some are small startups, and others are multinational corporations. Regardless of your size, you need a comprehensive business insurance program behind you to protect you from the risks that are always looming.
Biotechnology companies work with delicate, expensive equipment as well as fragile and sometimes even hazardous cells or other materials. Your equipment, as well as the cells or compounds that you are working with, can be easily damaged. While your business is carrying out potentially life-altering experiments, you are responsible for protecting your employees and other members of the public while in the presence of biological materials.
You may also face spoilage risks, supply shortages, equipment breakdowns and product recalls, as well as more typical property and liability risks faced by all businesses. Every biotechnology company needs insurance policies that are tailored to their unique needs and their exposures.
In general, biotechnology companies may need to consider the following types of business insurance to protect property, customers, employees, vehicles and more from lawsuits, workplace injuries and other hazards that can be devastating.
Commercial property insurance protects your lab facilities and contents — from office equipment to expensive, delicate machinery — in the event of fire, weather events, theft, vandalism and other covered perils. In addition, you may need various other types of property coverage:
Commercial general liability (CGL) insurance provides broad liability protection for bodily injury and property damage to third parties caused by your negligence. You should also consider the following types of additional liability coverage:
Some of these can be purchased as endorsements to your CGL policy while others might require a separate policy. All of these types of liability coverage can be tailored to the unique needs of your biotechnology company.
Biotech companies also need workers’ compensation insurance to protect employees from the costs associated with workplace injuries and illnesses. Your employees are exposed to dangerous substances and biological materials and can be injured or become ill even if you have the most stringent safeguards in place. Your independent insurance agent can help you purchase the workers’ compensation insurance required by your state.
If you are a biotechnology firm that manufactures medical devices or pharmaceuticals, you may have a product recall exposure. Product recalls can be financially devastating, even for large firms. Costs can include the following:
Product recall insurance helps you with many of these costs and perhaps can even keep you from declaring bankruptcy or closing your doors. It reimburses you for recall costs whether or not you were negligent.
Biotech insurance is no less complicated than the biotech industry itself. You need the help of an experienced, trusted partner who knows how to work with companies like yours. A Trusted Choice® agent can work with insurance companies who specialize in the biotech industry. Your agent can help ensure that you are not getting cookie-cutter coverage designed for a far less complicated business.
Contact a Trusted Choice agent for tailored biotech insurance advice and solutions.