When Does a BioTech Company Need Insurance?

I get this question a lot from Life Science companies and it's an excellent question. You have so many things to worry about, from funding to FDA approval, where does insurance fit into the Life Sciences picture. Can it be put off? This particular post is pertaining to Property & Casualty Insurance, not Health Insurance. If you answer, YES, to any of the questions below, you should contact a Life Sciences Insurance professional.
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Do you have employees or contractors acting as employees? 
Work related injuries happen no matter how safe you make the work place environment. According to the CDC, falling down is the most common office injury. This could be from wet floor or tripping over something (a work bag, cord, chair, etc.). A Workers Compensation policy will respond to these types of office injuries, and quite frankly, they could be costly.

Do you have office space? 
If you have office space, you most likely have guests entering for meetings. What happens if they get injured on the premises? You most likely will be held liable. If your landlord hasn't required you to have General Liability Insurance, it's probably only a matter of time before they ask for a Certificate of Insurance. Take the time to get it now rather than having to scramble to get it. 

Do you have product/inventory, office equipment or medical equipment? Basically, any property that your company owns. 
Even if it's minimal, why risk it? I tell people, if it's minimal, chances are the premium will be minimal as well. When it comes to property insurance, when have you ever regretted purchasing it? 

​As you can see from the above, it's really during the infant stages that you should be working with an experienced Life Sciences Insurance broker that is familiar with the industry. It's not worth the risk to forgo the coverage. You might be thinking, we are pre-revenue and don't have any money for a policy. Fortunately, a policy for a Life Sciences company in the initial stages of business certainly won't break the bank. This is where working with a broker like Strive Insurance Group has its advantages. Feel free to call or email me if you have any questions or would like a quote. 

Jason Matison
Commercial Insurance Agent
Austin, Texas