Life Sciences Companies Have Unique Exposures
A LicataRisk client, a life sciences company, had a unique insurance need, and we applied the creativity to solve it.
Umbilical cord blood and tissue has unique medical uses. However the need for the blood and/or tissue may not arise for some time, and additionally, new applications for the material are being discovered over time.
In the meantime the material has to be cryopreserved using freezing at very low temperatures. The temperatures need to be, and are able to be, constantly monitored. When the material is being transported and when it is stored, there is a need for insurance to coverage. The big question is: what is the trigger for coverage, and when do we know we have a claim? It is complicated because we will not know for certain there is damage until years in the future when the material is put to use.
Working with the client’s scientists and underwriters at Lloyd’s of London, we developed an insurance product that responded and paid losses, at an agreed, fixed, amount per sample, when an event causes the temperature to rise above a certain level, from whatever cause.
Constant awareness of new exposures, and creativity in finding solutions, is the key to effective risk management.
May 25, 2018