One of the imperative industries which face the complex range of risk is the Pharmaceutical Industry. Nowadays, the huge risk and major challenges faced by the Pharmaceutical Industries include counterfeiting and intellectual properties, and product recalls owing to the increase in the outsourcing and enhanced efficiency involved to save cost and maintain quality. Product safety is one of the important and top priorities of these pharmaceutical companies. Faulty drugs not only lead to reputation damage but may also cost the life of the people. Other issues include System Crisis in Healthcare, Strict Legal Environment, Sophisticated Supply Chain, and Increase in the Distribution Cost, Growing Regulation and Intense Competition in the market.
Therefore, there is a need for a professional, sophisticated risk management program and tailored insurance cover for thisindustry. It is a must for the pharmaceutical industry to opt for an insurance company that not only has the knowledge and expertise to support them but also have the financial strength to provide major capacity and worldwide resource to provide immediate help in case of a claim. The policy offered by this company must be efficient enough to cover the worldwide operations of the clients and particularly expertise in clinical trials liability insurance, and at the same time offer specialist cover around the world ranging from single studies to multi-location research program. Today, there are many insurance companies which are expertise in this specialist industry and are dedicated to offer enhanced service to their customers.
The reason to opt for this pharmaceutical insurance policy is that it provides a tailored solution to the clients (be they pharmaceutical producers, distribution companies or research centres). The policy covers specialist property, liability covers (including the clinical trials liability insurance), supply chain risk management and marine cargo solutions. It also covers property damage which includes physical damage from natural calamities such as windstorms, earthquakes, flooding etc.
The insurance provides pharmacy insurance, professional indemnity, clinical trials, policy wording specifically designed to provide broad cover, drug licences, manufacturing of product, errors and omissions, avoiding malpractice, financial exposures, requirements for licence agreements, contract issues, product and medicine recalls.
Before selecting the insurer, it is also essential to consider that the insurance company you select understands all the legality and potential exposures you face especially when you are in a high-risk pharmaceuticals industry. The company with the backing of a leading team of legal professional’s experience and index specialist knowledge can give you the best possible advice on risk management and the insurance.
It is a wise thing to take the risk, without it there is no room for your business to grow. But it is also important to connect to a broker that helps to empower you to embrace your risk.
By: Mr.Rakesh Goyal, Director, Probus Insurance Broker Ltd.