What is Life Science Insurance?

The Life Sciences Industry is complex and high-risk. Life Science Insurance Policies protect Life Sciences Businesses from key industry risks like:

➤ Claims from participants of clinical trials.

➤ Bodily harm caused by product malfunctions.

➤ Financial loss related to errors or omissions.

➤ Patent infringements.

➤ Privacy breaches.

Why do I need a specialised Life Science Insurance Program?

Businesses in the Life Sciences Industry need to take insurance seriously. They are offering complex products and services in a heavily regulated industry. Often, small mistakes result in large losses.

The best way to protect your Life Sciences Business is by working with a specialist broker — like KBI. We have a mix of industry and insurance knowledge. We can give you expert advice on the risks associated with your business, and work to protect you from them.

Who is Life Science Insurance for?

Life Science Insurance is a must-have for Clinical Trial, Research and Development, Biotechnology, and Pharmaceutical companies. It is also important for businesses who work with these companies as contractors, consultants and support providers. Activities that need coverage include:

Research & Development

Biotech R&D

Non-clinical research

Clinical research

Medical device development

Drug discovery and development, including products based on proteomics, genomics, and molecular level disease studies


Medical devices

Prescription pharmaceuticals

Laboratory equipment used for developing drugs and medical devices

Over the counter pharmaceuticals

Health supplements

Veterinary treatment products

Testing & Trials

Pre-clinical testing

Analytical testing

Human clinical trials

Rodent clinical trials

Support Services

Site management



Need help understanding the type of coverage you need or don’t know where to start?

Allow us to provide some tailored information – obligation free!

What does Life Science Insurance cover?

Main sections of cover

➤ General and Product Liability

This section covers costs that you are liable to pay due to third-party injury or property damage. It includes claims that result from product failure and day-to-day business activity.

➤ Errors and Omissions

This section covers financial losses incurred by a third-party as a result of your unintentional mistakes. It can include contractual breaches, accidental omissions and negligence.

➤ Clinical Trials

This section covers compensation for the bodily injury of clinical trial participants. You can extend coverage to include no-fault compensation — for cases where the injury is not related to your negligence.

➤ Patent Issues

This section covers legal costs related to patent infringement allegations. It includes allegations that you make as a patent holder and allegations that other patent holders make against you.

➤ Cyber and Privacy Insurance

This section protects you from financial losses related to cyber-attacks. It can include data loss and costs associated with mitigating the impact of an attack.

➤ Privacy Breaches

Health information has strong legal protections. This section covers legal fees, fines and other costs related to unintentional data breaches.

Common coverage extensions

Reputational damage

Crisis response

Coverage and the product life cycle

life sciences insurance

Claims Example

There is a labelling error at your pharmaceutical factory. High-dose pain medication is put in low-dose packaging.
➤ Event: A consumer overdoses and sues you for medical costs.
➤ Section of cover: General & Product Liability — Bodily Injury.
➤ Event: News networks pick up the story.
➤ Coverage extension: Reputational Damage.
➤ Coverage extension: Product Recall.
➤ Event: The Government or a statutory body order a product recall.
Your company creates the participant screening questionnaire for a clinical trial. A critical medical-history question is missing.

As a result, the trial admits several unsuitable candidates.  Some participants are at significant risk of complications.

➤ Event: You are sued by the company who hired you for the cost of repeating the trial.
➤ Section of cover: Errors and Omissions — Third-Party Financial Loss.
A cyber attacker breaches your systems. They steal the raw data from a recent clinical trial, including participant names and dates of birth.

An investigation finds that your company has not met requirements around storage of personally identifiable data.

➤ Event: You hire a specialist to recover the data.
➤ Section of cover: Cyber Insurance.
➤ Event: The data breach results in fines and a lawsuit from affected parties.
➤ Section of cover: Privacy Breach.
➤ Section of cover: Notification Costs.
➤ Event: You report the breach to the OAIC

What’s Next?

Let us tailor a program that best suits your business needs.

Quote Requirement

Please complete this Proposal Form and return to our brokers below to arrange a Life Science Insurance quote. (Download Here)

Why Work with KBI?

KBI’s specialist Life Sciences Insurance team has expert knowledge of insurance, risk management and the technology sector. They leverage this knowledge along with KBI’s networks and strong industry relationships to create custom insurance solutions specific to each firm’s needs. We keep our customer’s informed every step of the way. We provide expert recommendations and are always on hand to help them make informed decisions.

Life Science Team

nick george
travis kenzle kbi
Managing Director

Contact Info

Street Address:

Level 18, 140 St. Georges Terrace, Perth, WA, 6000

PO Box Z5102, St. Georges Terrace, Perth WA 6831

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