A life science company in a rural area sustained loss as a result of a brush fire in the canyons nearby. Although the property did not sustain fire damage, the power went out and was out for four days. Although a UPS was in place, it was only a 48 hour backup and insured suffered loss to reagents due to temperature change in a controlled environment.
An R&D life science company lost research animals (mice) in a fire. Given the specialized nature of the research, the mice used had been specifically raised for the purpose. Replacement cost for the mice was valued about $5,000 each, plus there was additional loss sustained by insured during their downtime while research had to be halted.
Product Liability/Human Clinical Trials
A company entering a Phase II human clinical trial was sued when participants had adverse reactions to an implanted device that ultimately was the result of a contaminant during the manufacturing process.
Errors & Omissions
A CRO providing laboratory services to large pharmaceutical companies had improperly labeled some lab results and, as such, the pharma company had to resubmit NDA information to the FDA. The pharma company claimed financial damages as a result of the delay.
Your business includes sales persons traveling to other states. One sales person flies to Dallas and rents a car. While driving to an appointment they get into a car accident. The driver of the other car is injured, as well as both cars. The business auto policy will cover the damage to both cars, as well as the medical attention to the other driver.