Buildings and personal property are critical to a life science company’s ongoing operations. Any damage to buildings, equipment, stock or valuable papers, or interruption of research and development activities, could be devastating. LS Prime’s® property insurance is designed to address a wide spectrum of property and income loss scenarios.
Risks could range from the commonplace to industry-specific, including:
- Loss (including spoilage) of property due to change in the controlled environment in which such property is stored
- Loss of research materials that can be challenging to value and recreate
- Production operations which are highly susceptible to contamination
- Financial exposure stemming from validation and compliance requirements following a loss
- Political risks for life science companies with overseas exposures including wastage, delay, confiscation and political violence
LS Prime® Property Specific Solutions:
- Automatic property and time element basket limits which provide policyholders the flexibility of customizing coverages to address their particular exposures
- Expanded definition of “contamination” by not limiting a biological contaminant to a “living organism” and not requiring the loss to be “sudden”
- Broad definition of “change in environmental control” to address environmental changes - such as those caused by exposure to light
- “Electronic data processing property” coverage is not sub-limited
- “Stock / finished goods” includes both finished stock as well as products waiting for packaging or final release
- A “Business income & extra expense loss to R&D property” can often lead to significant reinvestment and loss of income and extra expense. LS Prime provides coverage for such losses
- “Loss of market” coverage is a customizable limit based on individual needs
- “Process water” in described newly acquired premises is included with sublimit
- “Salesperson’s samples” is included with sublimit
- “Unnamed premises” is included with sublimit
LS Prime® Political Risk
Life science companies are increasingly exposed to political risk as they manufacture or distribute products or conduct research and development overseas. Political risk insurance for life science companies is essential coverage to address exposures whether it is to protect the continuity of a clinical trial or to ensure that perishable products reach their destinations in time and intact.
Key Perils Addressed by LS Prime®
- Actions by a government such as confiscation, expropriation, nationalization, requisition and sequestration.
- Political violence such as war, civil war, rebellion, sabotage and terrorism.
- Detention or delay of perishable material by a foreign government:
- While the material is in detention the shelf life expires or the material is stored improperly making it unusable.
- The delay prevents a policyholder from meeting delivery requirements or satisfying contractual obligations.
- Currency inconvertibility preventing repatriation of earnings.