At a glance, the life sciences sector consists of all organisations with purposes related to developing or producing their own pharmaceutical or medical technology (MedTech) products.
The industry is largely connected to the supply chain and specialist service sector, since life sciences Businesses rely heavily on unique, high-value raw materials to manufacture their products. Because of this, major exposures for the industry include product liability, safe handling and storage of sensitive raw materials and final products, property theft (both physical and intellectual), cyber-security and more.
The specialist nature of life sciences Businesses creates unique risks. Are you properly managing your life sciences organisation’s industry-specific risks? We run through some of the niche risks and more to help life science Businesses identify potential blind spots in their risk management and Insurance policies.
Property exposures
In the life sciences sector are substantial and can come from many sources, including machinery failures, improper material storage or spoilage, natural disasters, employees, suppliers and other third parties. When discussing property exposures, chemical, fire and machinery damage are of particular concern, and life sciences organisations face an elevated level of risk due to hazards like complex machinery, the use of chemicals and other hazardous, potentially flammable materials, storage of sensitive data and processes that require extremely sterile conditions. Additionally, dishonest employees in a workplace with innovative ideas, new discoveries and exciting research can contribute to the likelihood of intellectual property theft.
Crime and Cyber Security
One of the challenges for Life Science companies is Crime and Cyber Security, especially because their operations often include the handling and distribution of high-value products, equipment and sensitive data.
To make matters worse, thieves can strike at any time, leaving owners to recoup any lost funds, materials or equipment. In this day and age, thieves (including your employees) do not need direct access to funds to steal from you—merchandise, supplies and data are all fair game. And in the age of the GDPR, a data breach can result in costly consequences. What’s more, the location of a life sciences lab or plant as well as its hours of operation can have a significant impact on its level of crime risk.
Goods in Transit and Stock
As a life sciences organisation, you are responsible for property that may not be covered by traditional Insurance. Cover for transport exposures, such as goods in transit, marine cargo and stock throughput Insurance can fill these gaps. Without a proper marine cargo policy, property that’s unique or valuable, in transit, in your temporary care, stored at fixed (but movable) locations or used to transfer information represent major exposures. Specifically for life sciences Businesses, marine cargo Insurance can provide much-needed protection for high-value raw materials, computer equipment, data and records, and final products transported to various locations.
Management and Director Accidents & Mistakes
Directors and officers liability can be significant for life sciences organisations, as poor practices and Business disasters are often traced back to senior-level management.
Between strict data protection regulations—such as the GDPR—that could hold directors and officers accountable for cyber-attacks, and the unique nature of being associated with disease management, illness prevention and health care professionals that often encounter life and death scenarios, one simple mistake can become catastrophic for senior management.
Employee Accidents and Injuries
On-site accidents in the laboratory or at the manufacturing plant can lead to costly employer’s liability claims. Complicating matters, there are a number of risks to account for, including cuts and burns, slips, trips and falls, ergonomic-related hazards, workplace violence and chemical exposures. Things like improper lifting techniques, poor chemical safety and inadequate training can all cause your employees to suffer an injury on-site—disrupting your Business and negatively impacting your bottom line.
KIN Conclusion
While the proper risk management practices can reduce certain exposures, no system is 100% effective in ensuring an accident-free workplace. As a result, it’s all the more crucial to work with a knowledgeable Insurance Broker to not only assess your exposures, but secure the appropriate cover as well.
Get in touch with our highly experienced team today for a no-obligation quote or for a free review of your upcoming renewal. Call us on 01903 238889 or complete our contact form.
