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Insurance for service providers in the life science industry

What you should look out for as a service provider in the life sciences / biotech sector. 

Our clients from the life sciences sector are faced with challenges on an almost daily basis. Whether it is the direct research and development of products/technologies that will later be used in medicine, biotechnology, pharmacy and other areas, global test subject studies, handling highly sensitive data or obtaining funding from the private and/or public sector. In order to make this a success, a variety of disciplines and know-how carriers are required, which are usually also provided by service providers. However, these service providers are liable for culpable damages, so they should be insured in the interests of our life sciences clients (insurers as solvent debtors in the event of a major claim). 

With regard to the various disciplines, there are a number of potential errors and liabilities, e.g:

  • Incorrect structuring of the study format,
  • Accidental unblinding of studies,
  • Accidental switching off of the "refrigerator" with the samples by a cleaner,
  • Missing renewal deadlines after admission and in the study / admission process,
  • Software problems cause data loss, which causes incorrect study results, 
  • Errors in the data analysis lead to false conclusions from the clinical study,
  • An escrow account payout error,
  • Insufficient protection of sensitive test subject data.

As a result, there is a risk of additional costs due to discontinuation or interruption of the study or loss of marketing authorization. It is advisable to maintain (financial loss) liability policies for damages, in particular financial losses. The so-called E&O insurance is the central insurance for service providers of life sciences companies. This insurance also covers the defense against unjustified financial claims and the coverage of legal costs.

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Whether additional insurance is advisable for you and should be integrated into our life sciences service provider concepts, for example on a modular basis, depends on your range of services. The same applies to the level of cover, if this is not contractually stipulated, on which we will be happy to advise you.

We would be happy to support your institution or you as a sole trader with the right insurance cover for your range of services and also coordinate with your client's insurance cover so that there are no gaps or "overlaps". Talk to us (enquire here now).

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