HKMB HUB International serves a diverse range of clients in the Life Sciences/Bio-Tech sector with research and operations in Canada and worldwide. Our industry expertise allows us to adapt your insurance and risk management program to your business plan and management objectives, in turn, mitigating your overall exposure and cost of risk.
HKMB HUB's brokerage services uphold the following key qualities:
- Strong advocacy of the interests of our clients
- Industry-specific expertise and commitment
- Minimizing client cost of risk
- Maximizing client options and solutions to risk
- Substantial marketplace leverage in negotiations with insurance markets
- Proactive working knowledge of the insurance marketplace
- Proactive engagement and ongoing consultation with clients
- Full international access
- Adaptive and innovative
The Life Sciences/Bio-Tech sector faces some unique insurance and risk management concerns including:
- Importance of worldwide access for foreign insurance placements
- Clinical Trials Liability
- Directors’& Officers’ Liability
- Products Liability
- Research and Development and Interruption of Business
- Patent Infringement
- Professional Liabilities
- Property Replacement
- Equipment under Warranty
- Key Employee Replacement Expenses
- Pollution/Bio-contamination/Environmental Liability
- Manufacturers Errors and Omissions
- Coverage for Change in Temperature/Spoilage
- Product Recall
HKMB HUB can help you examine these risk management and insurance issues as well as provide effective solutions.
Industry Experience
HKMB HUB provides brokerage services for private and public companies and non-profit organizations involved in:
- Bio-tech Research and Development,
- Medical Technologies and Systems, and
- Manufacturing and Distributing:
- Pharmaceuticals and Generic Drugs,
- Surgical and Medical Instruments,
- Biological Products,
- Surgical Appliances and Supplies,
- X-Ray and Electro-medical Apparatus,
- Medicinal's and Drugs, and
- Herbal Medicines.
Our client list includes:
- Contract Research Organizations (CRO’s),
- Hospitals,
- Nursing Homes,
- Rehabilitation Centres,
- Pharmacies,
as well as, healthcare professionals.
HKMB HUB understands the myriad of relationships that must exist in order to deliver high quality healthcare in a productive manner. In terms of risk exposure, we are mindful that no organization in this sector operates in isolation.
Clinical Trials Liability
Clinical Trials coverage protects management and the organization from potential liabilities associated with sponsoring or conducting clinical trials. The coverage is excluded from the basic commercial liability insurance policy and there are only a limited number of insurers worldwide willing to underwrite the risk. Placing the risk requires a knowledgeable broker with access to negotiate and place coverage internationally.
The premium for Clinical Trials coverage is dependent upon factors including:
- Requirements of ethics boards
- Trial site/jurisdiction
- Clinical phase
- Consent form language
- Number of participants
- Trial duration
- Type and nature of the product or technology
- Limit of insurance
Directors' and Officers' Liability
Companies in a start-up or early development phase can find it more difficult to source Directors’ and Officers’ (D&O) Liability Insurance. Your broker's ability to advocate the long term viability of your business to underwriters contributes to the availability and quality of D&O coverage you may obtain. In addition, a knowledgeable broker will understand the relationship between D&O insurance and Clinical Trials, IPO's, U.S. listings, Mergers and Acquisitions, intellectual property and various financing arrangements, and be able to maximize coverage while minimizing cost. That broker will appreciate that a broad coverage platform is necessary to address a range of exposures, including securities claims, statutory liabilities and employment practice issues.
Corporate Entity Coverage
Many D&O policies do not provide coverage for the corporate entity. However, extending coverage to the corporate entity is important for securities claims and employment practices liability as the corporation is almost always named as a principal target defendant. HKMB HUB can demonstrate instances in which we have found innovative ways to add entity coverage to the policy, while maintaining robust coverage for the protection of the directors and officers.
Products Liability
Potential legal liabilities associated with products are always difficult to assess and forecast. Contractual relationships among manufacturers, distributors and customers can substantially influence legal liability for bodily injury or property damage involving products. HKMB HUB is experienced in clarifying contractual responsibilities of domestic and foreign manufacturers or distributors and minimizing the cost of financing/insuring these risks.
Issues we analyze with regard to product liability include:
- Adequacy of policy limits (per claim and policy aggregate)
- Treatment and control of defence costs
- Impact of deductibles
- Contractual risk transfer, including Hold Harmless/Indemnification agreements
- Impact of foreign manufacturers on legal liability
- Contingent liability issues
- Vendors’ extensions
- Implications of "claims made" policy form
- Discontinued product lines and legacy liability issues
- Regulatory clearances
- Quality control factors
- Punitive damages
- International courts jurisdictions
Research and Development and Business Interruption
Standard insurance policies do not normally cover the potentially substantial losses related to the restoration of a research and development project that has been impaired or destroyed in some way. Some of the variables that need to be considered in analyzing this exposure are such things as the projected cost of restoration, coverage limits, locations, back-ups, time periods established in contracts, and the reliance on key suppliers or customers.
HKMB HUB assesses and manages coverage to mitigate the impact of business interruption on business income including contract revenues, licensing fees, consulting fees, funding grants or progress payments that would have been earned by or awarded to your R & D operation.
Patent Infringement
Insurance solutions are available to address the legal costs associated with defending patent claims made against your organization, or to fund the legal pursuit of others allegedly infringing on your patent rights.
Professional Liability
HKMB HUB is very experienced at assessing potential malpractice and professional liability exposures and structuring coverage to mitigate this risk. We are well aware of the often complicated relationships and insurance issues that exist between coverage purchased on an individual basis through regulatory or licensing bodies, and the exposures and coverage for an institution/organization where the professional is employed or works. We regularly work with and place coverage with the major professional liability insurance facilities worldwide.
Property Replacement
Damage to your building, contents, equipment or supplies is normally covered under property insurance policies. However, key issues unique to the sector include:
- Contractual requirements for equipment supplied under special loans/financing;
- Electronic information/intangible property;
- Replacement cost of technologies;
- Contamination perils such as, change in temperature/humidity and spoilage (both on and off premises or shipments in transit).
Equipment Under Warranty
New and evolving methods for arranging and financing warranty agreements require a working knowledge of the industry and risk financing. HKMB HUB has a proactive expertise in this area which puts us ahead of the competition.
Key Employee Replacement Expenses
When a key employee is killed or permanently disabled, a firm may face significant business interruption costs as well as hiring, training and relocation expenses. HKMB HUB specializes in sourcing a form of business interruption coverage designed to pay such expenses.
Pollution/Bio-Contamination/Environmental Liability
Life Sciences and Bio-Tech companies can be subject to unique environmental exposures, such as biocontaminants, or refrigerant and radioactive contamination, that present significant loss potentials. In some cases, coverage is available for sudden and accidental discharge, dispersal, seepage, migration, release or escape of such contaminants at your premises.
