The research and development sector is moving at a rapid pace, and to support this rapid progress and help its continuity and business continuity and mitigate the risks they may face, it is necessary to obtain appropriate insurance coverage, as it usually does not provide standard property insurance or even business interruption insurance only adequate protection from risks. The potential that companies operating in the research and development sector may face, or needing research and development services to grow their business.
If there is no adequate and sufficient insurance coverage to cover the potential risks, some companies may not reach their goals during the specified time frame for product research and development, or the research and development process may need to be re-studied again due to the emergence of new variables or developments, which results in losses in several Aspects.
These risks and the related coverage can be divided into three sections as follows:
1 – Legal liability, which includes: general liability – product liability – professional liability – managers’ professional liability – liability resulting from cyber attacks, public liability insurance and product liability insurancePublic and Products Liability Insurance:Employer liability insurance Employers’ Liability Insurance : , Covers liability to employees against injury or disease arising from their work in research and development, professional liability insurance for research and development companiesProfessional Liability :In addition to securing the risks of cyber attacks.
2- Asset and property insurance, and it covers the material assets of the insured, including buildings and also (laboratory equipment), office and laboratory machinery and equipment, computers and stock, laboratory books, prototypes, research and development materials, and mobile equipment.
3- Management risks. Examples of risks that occur in the research and development sector and are covered under insurance:
1- Product liability insurance, including injury to the patient after consuming a drug that the insured manufactured, a manufacturing error in the orthopedic implant device that resulted in bodily injury to the user.
2- Insuring financial losses, when the clinical trial data is damaged after a malfunction in the software of the insured special program, which costs millions to repeat the experiment, and in the event that a client claims that the research that was conducted for him has caused a loss of more money than he earned, and consequently. A customer may sue the company for failing to deliver the results it promised.
3 – Providing human laboratory experiments, for example the injury of a healthy volunteer with damage to the facial nerve while participating in a clinical trial to test the safety of the drug that the insured is studying, and research the injury of the volunteer in clinical trials with liver poisoning, and the volunteer filed a lawsuit against the insured for failure to disclose Complete, and clarify the risks of bodily injury that may result from the experiment.
4 – Securing business interruption, for example, a medical devices company was exposed to a fire in the department of painting new devices, and this caused work and production to stop, while the company continues to bear the normal operating expenses during that period, until the losses resulting from the fire are treated in the department.
5 – Securing the risks of cyber attacks, such as: hacking into the company’s system, stealing all research data, and exposing all company customers’ data to danger, and thus customers may sue the company for damages and leakage of their personal data.