Spoilage

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.

Research Animals

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.

Automobile

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.

Property

What's covered in a property policy?
Property policies separate losses into various types, each with its own conditions and limitations. Personal Property includes the normal contents of your business property. Real Property is permanent property, like a building. Business Interruption covers lost income as a result of a covered peril. Extra Expense reimburses your business for reasonable money spent, over and above normal operating expenses, recover from a covered cause of loss.

Is coverage for Earthquake and Flood included in a standard property policy?
Most policies exclude coverage for earthquake and flood coverage. Separate policies can be obtained for these coverages.

What is Co-Insurance?
Co-insurance is an arrangement by which the policyholder is required to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.

General Liability

Does Product Liability coverage in the policy provide what I need related to my software products and services?
No, the Product Liability coverage in the policy will not provide the coverage you need related to your software products and services. This coverage provides coverage for a tangible product. Your product is intangible which would be covered under an Error’s and Omissions policy.

What does "personal and advertising injury" mean in general liability insurance coverage?
Personal and advertising injury includes liability to a third party for bodily injury or property damages as a result of things like libel, slander, false arrest, wrongful detention, false imprisonment, which occurs during the policy period.

Errors & Omissions

Why would a company need errors & omissions for Life Sciences? Consider the following scenarios:
A research organization loses trial data collected and stored by them per their contract with the National Institutes of Health. Although government claims and proceedings are excluded in most Errors & Omissions forms, the Customarq for Life Sciences policy responds to a financial injury claim made by a governmental authority.

A manufacturer of MRI equipment issues a notice concerning the failure of one model. A hospital owns two of the failed models and endures the lengthy repairs. While unable to use the MRI machines, the hospital decreases its patient load and refers patients to other hospitals. The hospital claims reduced revenue for the patients turned away. The Errors & Omissions policy in Customarq for Life Sciences responds to the financial injury claim made against the MRI manufacturer.

Automobile

Can I provide primary coverage for my employees driving their own autos for company purposes?
This type of coverage is not standard in a Commercial Auto policy. The policy is designed to provide secondary coverage that will step in when the employee’s own policy is insufficient or the company is named in the suit in addition to the employee. In certain situations, insurers will provide this coverage on a primary basis but will charge an additional premium for it.

Should my company require my employees to maintain personal auto insurance?
Yes, all employees that drive for company purposes should maintain their own personal auto insurance policy. Proof should be required annually and kept in the employee’s file.