Medical device product liability insurance – is it proving too costly?
Whilst there are many factors that can increase the cost of product liability insurance for medical device manufacturers the underlying cost is still very expensive when compared against other industry sectors. This is driven partly by the risks associated with product liability and medical devices but also by the number of Insurers interested in providing insurance. Whereas a widget manufacturer may a have long list of insurers happy to quote and provide cover, a medical device manufacturer may be able to count on one hand the number of insurers interested in their business. This lack of supply and ultimately lack of competition undoubtedly maintains the upward pressure on premiums. If you’re a start-up or micro medical device manufacturer looking for insurance this situation can create even greater difficulty.
In these circumstances it’s really important to engage with an insurance brokers who understand the medical device insurance market so that you ensure that the quotations received are the most competitive available. Not all insurance brokers have access or indeed relationships with Insurers that may be interested in providing quotations and you can waste time if you’re not careful.
It is also vital that potential insurers are in receipt of all the relevant information about your product so that they are completely comfortable with its features and potential risks.
ADF Insurance Brokers are vastly experienced in arranging insurance for medical device manufacturers and a thorough understanding of the insurance market for these products. For more details please do not hesitate to contact me.