How should I select a life sciences products liability insurance carrier?

In most industries, an insurance provider is just that: a provider. In life sciences, the best insurance providers are more like risk management partners. They offer liability coverage, of course, but they also work with clients to minimize potential risks and support them through any litigation or arbitration that arises. That requires a good understanding of both insurance and the medical products field.

“What you’re purchasing is not just the policy itself; you’re purchasing the institutional knowledge and the services that come along with the policy,” Kate Klaus, Senior Risk Management Attorney at Medmarc says. “So look for a company that can be a good partner to you as you’re building your business and putting your products out there.”

While some carriers support companies in many industries, others, like Medmarc, specialize in medtech and life sciences. In fact, Medmarc was founded by the medical technology and life sciences industry in 1979. That year, 31 companies that were members of the Healthcare Industry Manufacturing Association (the predecessor of AdvaMed), created Medmarc to be a permanent solution to the volatile products liability insurance market.

“We have employees who’ve been here for over 30 years,” says Andy Hall, Executive Claims Specialist at Medmarc. “They bring their deep knowledge and experience to work every day.”

As you’re considering risk management partners for your business, here are 6 questions to ask:

1. How long have you covered life sciences companies, and what expertise do you have?
2. Does coverage extend to newly acquired or formed organizations?
3. Does coverage extend to new clinical trials initiated during the coverage period?
4. What technical support do you offer?
5. What legal support do you offer if we’re sued?
6. Do you offer worldwide coverage and support if claims are brought overseas?

Coverage Overseas 

Every country has its own rules around products liability and litigation. If you’re selling into or conducting a clinical trial in another country, make sure your carrier has networks that can help you get locally admitted coverage there.

“Worldwide coverage is a key feature,” Hall says. “And on the claims side, be sure your carrier can get you quality help in a foreign country when you need it.”