Biotech and Pharmaceuticals Insurance

With the ever advancing landscape which is medicine it is important that you not only take the right precautions but have the right covers in place to help rectify and remedy any situation should an incident occur.  Biotechnology and pharmaceuticals insurance is designed to defend and aid pharmacies and other businesses creating and pushing the boundaries of medical science. The risks this industry is facing are diverse and complex: product recalls, counterfeiting and intellectual property are major challenges. Product safety is always the top priority – faulty drugs not only lead to reputational damage; they can cost lives in some circumstances. Biotechnology is a new industry in its own right, it is the re-engineering of the bodies own cells to help a particular ailment.

Understanding the difference between biotechnology and pharmaceuticals

Understanding the difference between Biotechnology and pharmaceuticals is for key insurers. This will determine the level of risk. Pharmaceuticals include drugs that can be manufactured under the right conditions with good manufacturing practices. Whereas biotechnology is based on the concept of altering a persons cells or using cells to fight symptoms of an illness or injury, this is laboratory based practice under the right conditions. Pharmaceutical businesses can sign up to the GMP (good manufacturing practices) which will help them to limit there risks as well as being seen favourably in the industry. Biotechnology companies can do the same for the GLP (good laboratory practices).

With pressure ever growing for businesses to eke out efficiency and reduce costs in order to produce their drugs, or engineer microorganisms or cells, for as cheaply as possible it is important that mistakes are kept to a minimum as mistakes in such an industry are very dangerous. It is important that the cover businesses in this industry have is tailored to their exact needs, and at ADF insurance brokers we pride ourselves on being able to meet the needs of our clients.

We are able to offer a wide range of covers to protect your business and ensure that it is able to continue to push the boundaries of medical science and benefit people’s lives. It is important to us that we are able to aid in the improvement of biotechnology and pharmaceuticals by protecting them from any possible risks and dangers.

The pharmaceutical industry in the UK is an ever developing industry with ever advancing techniques and practices. The industry never stays still with research continually being done in order to advance the drugs that are available in the UK. The UK is ranked the 8th largest pharmaceutical market in the world in terms of value and one of the leading in terms of growth as of 2013 ( As a result, any start-ups looking to enter this industry will not only need help but will need protection, in order for them to remain not only diverse and different but to be sustainable and long lasting in such as competitive and fast moving market. We aim to aid and help in the sustainability of such businesses as we know how the impact small businesses can have in changing and improving the market.

Risks the pharmaceutical and biotechnology industries face- insurance to protect from these risks:
  • Cyber security and information gathered from trials- Cyber insurance would protect against litigation should a claim arise from data being lost or stolen, this is particularly prominent for the biotechnology industry where data on individual patients is likely to be kept.
  • Intellectual property theft of a certain product or process- Intellectual property insurance will cover the cost of litigation should you infringe on intellectual property or somebody infringe yours,
  • None compliance to strict guidelines and industry regulations-  Product liability would be able to protect the business from the cost of none compliant practices,
  • When testing a new product-  Clinical trials insurance, would be necessary to compensate an individual testing the product should a claim arise as a result of injury. This is only relevant to human trials.
  • When selling a product- you will need to protect the business should an issue occur with the product you are selling, it will cover the cost of a claim brought against you from the public should the product you provide be faulty, dangerous, or not fit for use.
  • Theft of machinery or breakdown- We have the facilities in place to cover this.
  • Wrong doing by a director or officer- We have capacity to provide directors and officers liability insurance should you feel you need it.

For further information please contact us.