The Chubb Group of Insurance Companies announced that it has launched a portfolio of policies to help protect life sciences companies from property and casualty exposures faced by the industry.
“Chubb’s Customarq for Life Sciences portfolio offers life sciences customers property, general liability, products liability, human clinical trails and errors and omissions insurance in one package,” said the announcement.
“This new version of Customarq represents the next generation of insurance protection for biotechnology, pharmaceutical, dietary supplement, drug discovery technology, medical device manufacturing and product service organizations,” stated Philip Fiscus, senior VP of Chubb & Son, and worldwide life sciences manager for Chubb Commercial Insurance. “The life sciences industry continues to experience rapid changes in the legal and regulatory environment influenced by innovation. As a result, life sciences companies need even more specialized protection. To continue meeting our customers’ evolving needs, we have developed Customarq for Life Sciences to address the industry’s unique exposures to risk.”
Chubb said the new coverage “contains options and features that are often not available in standard industry policies.” These include:
– A new hybrid general liability contract offers life sciences companies the ability to select a single form containing an occurrence trigger for premises/operations and a claims-made trigger for products liability. The single form offers coverage precision, convenience to our customers and reduces potential for conflicts in the claims process.
– An extended occurrence period is a unique new option that extends the occurrence period for one year, rather than only the reporting period. This fills a potential gap for delayed occurrences from products that may still be in the hands of consumers after a recall or ban.
– Change in controlled environment protection automatically provides insurance for loss or damage to perishable property resulting from changes in controlled environment. Life sciences companies can protect property from damage due to spoilage; dampness or dryness of the atmosphere; change in air quality; change in temperature and more. Insurance protection applies to scheduled locations, any unnamed or newly acquired locations, and even includes property while in transit.
– A contamination contract offers extensive first-party property and business income protection, not found in most industry property policies, for a variety of contamination exposures. In addition, protection applies to scheduled locations and any unnamed or newly acquired locations.
– Product withdrawal and crisis management expense protection provides a $25,000 limit of insurance at no additional charge for life sciences companies with a formal product recall program.
Along with these enhancements, Customarq for Life Sciences offers the following insurance protection:
– A $500,000 automatic blanket limit of insurance for 12 property coverages, including research & development property, EDP property, valuable papers and personal property of employees
– A $250,000 limit for worldwide dependent business premises
– An unlimited extended period of indemnity for business income and extra expense; plus, business income protection tailored for companies in the research and development stage including coverage for grants, endowments or other financial contributions.
– nsurance against “all-risk” property/income perils such as water damage, inundation, backup and mudflow, electric arcing, mechanical breakdown, and steam boiler explosion.
– Condemnation of undamaged stock by government authority protection applies in instances when stock has not suffered any direct physical loss or damage, but has been condemned by a regulatory authority in the wake of a covered property loss.”
Chubb noted that the Customarq for Life Sciences portfolio is currently approved in 30 states – 10 with a September 1, 2004 effective date. It also indicated that “to round out an insurance program for life sciences companies, Chubb can provide umbrella, workers compensation, environmental, political risk and employment practices insurance protection.”