Understanding How Pharmaceutical Company Insurance Can Help Protect You


Risks and Liabilities facing Pharmaceutical Companies

Some of the other risks and challenges that threaten your pharmaceutical company include:

  • Public safety and product liability
  • Counterfeit drugs using your name
  • Product recall
  • Supply chain issues
  • Proper waste disposal
  • Perils / natural disasters including fire, water damage etc.
  • Theft
  • Equipment malfunction
Pharmaceutical Company Insurance
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How Pharmaceutical Company Insurance Can Help Protect You

Pharmaceutical company insurance is a customizable plan of adjustable coverages designed to respond to the specific needs of each individual pharmaceutical company.

Below are some of the more common coverages typically included in a pharmaceutical company insurance package:

Commercial General Liability Insurance for coverage of your pharma company’s commercial operations and will also include an extension for Product Liability Insurance.

Product Recall Insurance can cover the costs of issuing a recall including testing, profits lost on wasted product, replacement costs, disposal fees and brand rehabilitation expense.

Pollution Liability Insurance is another important coverage for pharmaceutical companies and can help protect them from the overwhelming costs of litigation, fines and cleanup expense.

Trademark / Intellectual Property Insurance that can cover your pharmaceutical company’s costs to enforce its trademarks. 

Accounts Receivable Insurance can help protect your profits in case purchasers fail to pay their balances and can include coverage for losses stemming from political unrest and other issues in countries outside of Canada.

Cargo Insurance provides comprehensive, end-to-end coverage for your shipments.

Property Insurance that protects building and contents including equipment, supplies, and assets in case of perils such as fires, floods, bad weather incidents, etc. Your pharmaceutical company may also require Business Interruption coverage to help you manage your operating costs after an insured peril and Extra Expense protection to help you set up a temporary location to continue operations. 

Boiler & Machinery Insurance / Equipment Breakdown Insurance that protects your pharmaceutical company from losses attributable to equipment failure including repair or replacement costs and other ancillary costs stemming from a malfunction.

Cyber Liability & Privacy Insurance which protects your organization from the costs stemming from a breach.

Crime Insurance / Fidelity Insurance covers losses due to employee theft or fraud.

Directors & Officers (D&O) / Board Insurance protects your board members from liability based on ‘wrongful acts’ and/or alleged breaches of duty.

Commercial Auto Insurance / Commercial Vehicle Insurance for your pharmaceutical company’s fleet of vehicles.

What level of coverage will be offered? 

The level of coverage for Pharmaceutical Company Insurance is customizable based on the individual needs of the business. The key coverages that should be included in Pharmaceutical Company Insurance should start with Commercial General Liability to guard against claims of bodily injury, property damage or false advertising associated with your customers interacting with your company. 

Another coverage that should be seriously considered is Product Recall Insurance to protect your Pharmaceutical Company against any product-related claims made against you. This could include defective or otherwise unsatisfactory or harmful products. Trademark and Intellectual Property Insurance helps to cover your company’s trademark products. There are a variety of other coverages that may need to form part of your policy package, depending on your company’s makeup. These include Property Insurance, Pollution Liability Insurance, Crime Insurance, Cyber Liability Insurance, Directors and Officers Insurance (for companies with a board of directors), Cargo Insurance, Equipment Breakdown Insurance and Commercial Auto Insurance. Discussing your company’s individual needs with an ALIGNED Insurance specialist is the best way to get a picture of your liability needs. 

Why is Insurance for Pharmaceutical Organizations Important? 

Pharmaceutical Organizations are perhaps more at risk than your average company, given the potential for public safety and product liability that they face. Anyone operating in the pharmaceutical industry needs to have proper insurance coverage to protect their own interests, as well as those of their customers, with the proper insurance coverage. If a claim is made against your company alleging anything from a defective product to improper waste disposal, you could face claims in the thousands or even millions of dollars. Added to that are the risks associated with theft and natural perils, as well as equipment malfunction. A comprehensive Pharmaceutical Organization Insurance policy is essential to avoid claims that could cause bankruptcy. 

How much does insurance coverage for pharmaceutical businesses cost? 

The cost of insurance coverage for pharmaceutical businesses varies according to the level of risk associated with the business. Risks can come in the form of a number of different products, the number of staff employed, the number of years of experience the company has in this industry, the annual and projected revenue of the company, as well as factors like the area where operation and production are located. The larger the operation of a pharmaceutical business, the greater the risk and likely the greater the cost of insurance coverage. Speak with an ALIGNED Insurance agent today to determine the factors that affect your business. 

Get ALIGNED with the Right Pharmaceutical Insurance

Our brokers are not only commercial insurance specialists, we’re advocates too. We work with Canada’s top insurance companies to get your pharmaceutical company the coverage it needs at competitive rates. Get a quote online or contact us to discuss your pharmaceutical company insurance needs.

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