Why Life Science Companies Need Directors & Officers (D&O) Insurance

Life science companies face unique risks that require specialized insurance coverage. One type of insurance that life science companies should consider is Directors and Officers (D&O) insurance. D&O insurance policies generally cover exposures relating to any actual or alleged error, misstatement, misleading statement, neglect, breach of duty, omission or act by the insured employee in their capacity as such.

D&O insurance is crucial for life science companies because board members/NEDS are likely to require it and investors will almost certainly require it. D&O insurance can help to protect the personal assets of individuals and cover the costs of their defense.

Clinical/product trials create significant risk exposures for life science companies. Sensitive deadlines and contracts may also require D&O insurance.

It’s important for life science companies to consider D&O insurance because it can provide financial protection for claims made against anyone in or acting in a managerial role for alleged wrongful acts carried out in their various roles in the workplace. D&O insurance can help to protect the personal assets of individuals and cover the costs of their defense. If you have any questions about D&O insurance for your life science company, please contact us.