How Biotech Firms Can Safeguard Their Businesses
Biotechnology is something that is completely necessary in Canada. As a bio technician, it will be you and your firm’s job to conduct research and experiments that result in new processes, prototypes or products that will be used in different industries throughout the region. On any given day you will study microorganisms and cellular bimolecular process to alter living and nonliving materials. It goes without saying that biotech firms are in a complex industry and deal with a lot of risks every day. Not only are you faced with physical and environmental risks, but also you will face the risks of lawsuits and equipment or property damage. This is why protecting your firm with the right insurance policies is necessary.
Learn Your Risks
It is true that each and every biotech firm is going to be different. Some might just be a small startup working for a government entity, while other might be a multinational corporation working for entities all around the world. Whatever the situation is, you need a comprehensive and complex insurance package that will safeguard your company against all the potential threats that you are exposed to on a daily basis. However, before you can build that package, you need to understand your risks.
Biotech firms will constantly be working with delicate and expensive equipment. With such fragile equipment and hazardous chemicals, it isn’t unfathomable to think that the equipment could be damaged, which might lead to some kind of chemical outbreak or spill. After all, you are carrying out life-altering experiments. What if your employees are exposed to some kind of dangerous chemical? What if one of your employees exposes the public to some kind of outbreak? And, this is not to even mention the potential that your products or prototypes could harm someone.
And one of these situations could lead to death, injuries and lawsuits. It is easy to see that you and your employees are going to be exposed to numerous amounts of risks on a daily basis. And, no matter how careful or cautious you are there is always a change of an accident. Protecting yourself against these situations is necessary for any sized biotech firm in Ontario.
Consider Commercial Property Insurance
Commercial property insurance is an excellent policy that can offer unique coverage in a variety of situations. This policy protects your lab and equipment. If your lab is broken into and your equipment is stolen or vandalized, commercial property insurance will pay to have the items replace or repaired. If your equipment or office building is damaged due to a fire or natural disaster, commercial property insurance will cover the losses.
Depending on the provider that you are working with it is possible that commercial property insurance will come along with what is known as business interruption insurance. Business interruption insurance will cover any financial losses when you are not able to operate due to property damage, theft or vandalism. This policy will really be invaluable when you experience such a tragedy. When you are going through such a traumatic event the last thing you want to have to worry about is money.
It should also be noted that you could expand this policy to cover equipment breakdowns as well. For instance, if your equipment breaks down and forces you to close your door for a number of days, the policy will cover any income that is lost during the downtime.
Other Coverage That Is Needed
Sure, commercial property insurance safeguards your property and some loss of income situations, but it does not extend all the protection that you are going to need. Here are some other policies that you will want to consider to ensure that you are protected to the fullest extent.
- Equipment Breakdown Coverage – Without your equipment, you would not be able to operate. And, as a biotech firm you are going to be dealing with a lot of expensive equipment. Equipment breakdown coverage will replace any broken or damaged machinery. It will also pay for the repair costs of any broken down equipment.
- Spoilage Coverage – This policy offers protection in the event that any cells or biology materials are spoiled on site due to a utility interruption. For instance, if you are storing some material in a freezer and the power goes out and stays out for six hours ruining the material, spoilage coverage will pay to have the material replaced.
- Flood, windstorm and earthquake coverage – Depending on the provider that you are working with it might be necessary for you to purchase additional flood, windstorm and earthquake coverage. This coverage simply just offers financial compensation in the event that your office is damaged by a flood, windstorm or earthquake. It will not only pay for the damages to the building, but it will cover any equipment or materials that are destroyed due to the natural disaster.
Cover You Liabilities
Any biotech firm would be wise to invest in commercial general liability (CGL) insurance. It offers a wide range of liability protection for bodily harm and property damage to third parties. For instance, if a client slips and falls in your lab, CGL insurance will pay the medical expenses. It will also cover any court related costs in the event that the client wants to sue. However, CGL does not cover all the other risks that you are exposed to.
- Product Liability Insurance – Product liability insurance offers financial protection in the event that one of your products damages a client or a member of the public. It will pay the medical expenses that are related and it will also cover the court costs.
- Pollution Liability Insurance – If there are any liability claims that your firm has caused damage with hazardous materials, pollution liability insurance will offer the financial coverage that you need.
- Employment Practices Liability Insurance – This policy will offer protection if one of your employees claims that you violated anti-discrimination regulations.
Work With LiabilityCover
We here at LiabilityCover have a number of trained agents that posse in depth knowledge in the biotech industry. We know what risks you are exposed to and we can help you devise an insurance package that will protect you against them.