Case Studies
Case Studies
Think back to the most difficult insurance challenge that your organization has faced. How was it handled? Were all of your needs met?
We pride ourselves on excelling in these difficult situations to achieve the best possible results for our clients. Read our case studies to learn more.
For a no-obligation insurance quote for your life sciences company, call the insurance experts.
Reducing Unnecessary Policy Requirements
Situation
Our medical device industry client, which had carried a $3 million limited liability policy for some time, was negotiating a new licensing agreement with a university. Not understanding the true risk of the situation, the university arbitrarily demanded our client purchase a $10 million policy with an increased term limit and a 10 year tail. This policy would have been unnecessarily expensive, unneeded and very onerous for our client.
Solution
Working on our client's behalf, we engaged the university and its attorneys to create a case explaining the reasons why the requested policy was not necessary for our client. We discussed the university's concerns and why they believed this level of policy was necessary. By relying on benchmarking from other similar medical device companies and the risks they had been exposed to in the past, we were able to go back to the university with the facts and proved the $10 million policy was unnecessary.
ResultsWe presented the university with a tiered insurance program approach to which they agreed. The policy started at $5 million and would rise as our client hit certain milestones and also reduced the requirement on the tail. This policy made the licensing agreement economically feasible for our client while adequately covering the university's risk.
Advocacy for a Distressed Client
Situation
A life science industry client of ours was faced with conflict of interest charges. One of the doctors, who was speaking on behalf of the product, was also an investor in the company. The story received national attention when a leading business publication claimed that this doctor was writing favorable papers regarding the product, causing the stock price to rise and the doctor to benefit financially. At the same time that they were the subject of these charges, their insurance carrier decided to exit the life science business and thus non-renew our client's policy. Given the outstanding conflict of interest charges, our client was unable to find a new insurance carrier.
Solution
We worked with our client to "park" the charges using the notice of circumstances provisions of the policy with their existing insurance carrier, effectively leaving the liability with the expiring relationship and allowing us to locate a new carrier for our client. This removed the black cloud over our client and allowed them to start with a clean slate.
ResultWe were able to locate a new carrier for our client and keep their insurance program intact.
Maintaining Coverage Through an Uncertain Period
Situation
Our client was experiencing the “perfect storm” of issues. Their sole supplier of materials put them on notice that they had been shipping contaminated materials. At the same time there was a whistle blower claim that led to investigations from the FDA and SEC. These investigations eventually led to a class action suit and a Department of Justice investigation. Our client reached out to us for guidance because in order to save the company, they needed to maintain their product liability coverage and directors and officers insurance throughout this time period.
Solution
We worked tirelessly throughout the process to ensure that constant communication was ongoing between all involved parties. We actively worked to bring senior management of the insurance carriers together with our client's senior management to discuss the ongoing issues and concerns. This forum between the two parties allowed the carriers to hear our client's side of the story.
ResultThe company maintained the necessary product liability coverage and directors and officers insurance throughout the entire ordeal. The officers and directors stayed on throughout the process, and the company was able to stay in business.
Global Clinical Trials Expertise
Situation
A client that we had worked with since a very early stage in their development had reached the point where they needed to begin expanding globally. This meant dealing with a wide variety of international insurance challenges.
Solution
Our NewScience Insurance specialists overcame the coordination challenges of working with both United States- and foreign-based insurers to meet our client's needs. Specific challenges that we faced throughout the project included tying indigenous insurance policies into the global insurance program, coordinating worker's compensation protection throughout the various foreign locales and coordinating governmental schemes with the insurance policies.
ResultAfter addressing the global insurance challenges, the client eventually grew to conducting clinical trials in 17 foreign countries, a sales force strategically located around the globe and a truly global supply chain.