As the owner or manager of a laboratory business, you are trusted with research and testing that in many cases safeguards public health and advances a number of other industries. Doctors and other health care practitioners request tests for diseases and conditions, genome sequencing, and to determine the factors that are affecting patients’ health. Non-medical testing covers a wide variety of fields, and may include testing for metal content, for environmental factors, and food testing to name a few examples.
Whether it is medical or non-medical testing that your laboratory business performs, you are part of a highly specialized field, and one in which you are trusted to deliver accurate results. There is very little room for error in your field, and your business depends on maintaining accuracy. Laboratory Insurance is essential for individuals and companies involved in medical and research testing in laboratories.
What is Laboratory Insurance?
Laboratory Insurance is coverage that will protect your business in the event of claims being made against it. Being able to maintain your business depends on having insurance coverage that is customized to your laboratory. Otherwise, a large claim could cause your business to go bankrupt.
Firstly, Commercial General Liability (CGL) is important because it protects against liability claims for bodily injury and property damage claims related to your business’ products, operations, products, completed operations, advertising and personal injury liability. By providing coverage for court costs that may arise out a lawsuit against your business as a result of the tests you perform, this type of insurance is a must-have for any laboratory business.
Here is a list of additional coverages that laboratory businesses need to consider:
Anytime your lab technicians make mistakes can impact your business. An inaccurate test result can mean disaster for your business and your clients. Errors and Omissions Insurance is a necessity due to the nature of your laboratory business and helps guards against potential negligence on the part of your staff, however inadvertent it may be. As a business owner, you know that mistakes happen, but in order to safeguard your investment in your business, you need to protect yourself.
Commercial Property Insurance is another aspect that needs to be covered in your custom policy. Your lab and lab equipment are likely the most valuable of your assets, and they need protecting against every day and extended hazards. Get coverage for the actual costs of your assets, as well as their replacement value.
If anything happens that necessitates temporarily closing of your laboratory, Business Interruption Insurance can cover you for lost revenue. You still have to pay bills in the event of a business interruption, so you need to cover yourself for this possibility especially in a complicated space such as a lab.
When you keep the bulk of your sensitive client information and test results online, your business also needs Cyber Liability Insurance. This coverage protects you in the event that your online data, website or other cyber assets are comprised.
If you operate company vehicles as part of your laboratory business, you also need Commercial Vehicle Insurance. This would also apply in the event you operate a mobile laboratory that travels to clients. In your industry, commercial vehicles may themselves be expensive and may also be transporting delicate equipment, so this coverage is essential.
What Can Your Laboratory Insurance Cover?
The coverages listed above can help protect from the following hazards related to running your laboratory business:
- Inaccurate tests
- Spills and falls
- Perils like fire, lightning, floods, hail, etc.
- Vehicle accidents
- Damage to lab equipment
- Business interruption to any of these or other factors
- Hacking of online files
- Theft or burglary
Imagine the following scenarios that could affect your business:
- Your laboratory technician makes an error that contaminates tests on a series of geological samples. The material is compromised and can no longer be tested. Your client seeks redress for the cost of replacing the samples.
- A piece of equipment short circuits in your lab and causes a fire. Other equipment and some client samples are destroyed. Your lab has to be closed so that cleanup and repair can take place.
- Your mobile lab is involved in a minor fender bender while driving to a testing site. But even a small collision causes a fair amount of damage to sensitive equipment. You have to pause your service until repairs can be made.
While you have the technical expertise to operate your laboratory business, but it is difficult to predict what can go wrong.
Find the Right Laboratory Insurance from ALIGNED
ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.