Insurance for Biotech

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Overview

The biotechnology industry is an unpredictable sector due to the scientifically intensive nature of the operations conducted at the companies. The industry arose in the 1970’s with the goal of enhancing the quality of human life by servicing markets including industrial, agricultural, medical, and environmental. Biotech firms differ from the traditional drug makers in that they reject synthetic ingredients and instead utilize natural ingredients. Biotech firms are also the most research-intensive organizations in the world. Increasing demand for agriculture based products should enhance the biotechnology industry growth over the coming years, with expectations to reach USD 727.1 billion by 2025.

 

Why is Insurance for Biotech Organizations Important?

Securing funding and sustaining growth are two viable concerns for most biotech companies. For example, convincing investors to continue their funding is a hard-pressed task for biotech operations.

As your biotech company grows and requires more funding, it is crucial to ensure smooth and legal daily operations contributing to that growth. The availability of your product to the public increases your risk significantly, and this risk becomes more relevant as the company grows, as well. , Plus, insurance for biotech companies also helps you to effectively deal with the FDA and other regulatory bodies.

Research & Development

This stage can present various risks because of the fragile elements required and damaged materials can leave you at ground zero. Human error also contributes to R&D risk. Misplaced items, ill-followed procedures, or even everyday accidents can cause damage.

Clinical Trials

Outside the lab, biotech products must size up against real-life clinical trials. Unintended consequences, such as mutations or troubling results, have shut down development.. A study showed that only 32% of drugs have the probability of making it to Phase 3 trials and only one in 10 drugs overall actually make it to market.

Product Launch

A recent study highlights that the overall success rate for drugs, in the biotechnology industry, moving through clinical trials to FDA approved is near 1 in 10. In previous reports from earlier years, the rate of drug approvals was closer to 1 in 5.

Property Protection

Aside from protecting proprietary technology via patents, also consider physical property. Lab equipment, lab facilities, manufacturing tools, and many more items are worth a lot of money to a biotech operation. Property risks increase as your company experiences growth; the bigger you are, the harder you fall.

Biotech Insurance Frequently Asked Questions

The cost of insurance for biotech companies will depend on a number of things including the size of the company and the stage of the company in its development process. Other factors include:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Claims history: the type and amount of past claims against the company

Types of Biotech Companies that need insurance

  • Ag-biotech
  • Industrial Biotechnology
  • Therapeutics and Diagnostics
  • Biopharma
  • R&D Services
  • Medical Technology

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Rachel Jenkins, Customer Success Manager

Meet your specialist

Rachel is one of the premier leading insurance professionals with almost 10 years of experience in the industry. She has been with the Founder Shield team for several years, focusing on client advising and improving policy language for venture-backed companies including financial institutions, Ecommerce, and SaaS companies.

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