Why Insureds Seeking Life Sciences Coverage Can Benefit From Elevating Company Best Practices
White Paper Summary
When medical device, pharmaceutical and other life science companies consider their liabilities, concerns over product safety, potential recalls or contamination and the potential for patient injury are front and center.
Encompassing basically everything the FDA regulates save for food and tobacco, life sciences products can include everything from drugs that are in clinical trials to medical devices. These companies and the goods they bring to market are critical for people’s health, but if something is damaged or causes an adverse event, it could cost companies millions of dollars in litigation.
In today’s legal environment, where social inflation has driven ever-higher jury verdicts, insureds and their agents and brokers might think it’s important to highlight what controls they have for any high-hazard products in order to appeal to potential insurance carriers. But it’s not always complex, high-hazard products that result in costly legal entanglements.
Simpler products, too, come with risks and can be hit with litigation. High-hazard products tend to be tightly regulated, and some of the exposures they face are reduced since they’re so tightly monitored. Low-hazard products may not receive the same attention to detail.
“Some of the largest losses in the years that I’ve been in this industry segment have been things like latex gloves, toothbrushes and ice packs,” said Brad John, head of life sciences with The Hartford.
“Those are not the things that people really think about when they think about high-hazard products within the life science space.”
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