DIRECTORS' AND OFFICERS' LIABILITY
Companies in a start-up or early development phase can find it more difficult to source Directors’ and Officers’ (D&O) Liability Insurance. Your broker's ability to advocate the long term viability of your business to underwriters contributes to the availability and quality of D&O coverage you may obtain. In addition, a knowledgeable broker will understand the relationship between D&O insurance and Clinical Trials, IPO's, U.S. listings, Mergers and Acquisitions, intellectual property and various financing arrangements, and be able to maximize coverage while minimizing cost. That broker will appreciate that a broad coverage platform is necessary to address a range of exposures, including securities claims, statutory liabilities and employment practice issues.
CORPORATE ENTITY COVERAGE
Many D&O policies do not provide coverage for the corporate entity. However, extending coverage to the corporate entity is important for securities claims and employment practices liability as the corporation is almost always named as a principal target defendant. HUB can demonstrate instances in which we have found innovative ways to add entity coverage to the policy, while maintaining robust coverage for the protection of the directors and officers.
Potential legal liabilities associated with products are always difficult to assess and forecast. Contractual relationships among manufacturers, distributors and customers can substantially influence legal liability for bodily injury or property damage involving products. We are experienced in clarifying contractual responsibilities of domestic and foreign manufacturers or distributors and minimizing the cost of financing/insuring these risks.
Issues we analyze with regard to product liability include:
- Adequacy of policy limits (per claim and policy aggregate)
- Treatment and control of defence costs
- Impact of deductibles
- Contractual risk transfer, including Hold Harmless/Indemnification agreements
- Impact of foreign manufacturers on legal liability
- Contingent liability issues
- Vendors’ extensions
- Implications of "claims made" policy form
- Discontinued product lines and legacy liability issues
- Regulatory clearances
- Quality control factors
- Punitive damages
- International courts jurisdictions
RESEARCH AND DEVELOPMENT AND BUSINESS INTERRUPTION
Standard insurance policies do not normally cover the potentially substantial losses related to the restoration of a research and development project that has been impaired or destroyed in some way. Some of the variables that need to be considered in analyzing this exposure are such things as the projected cost of restoration, coverage limits, locations, back-ups, time periods established in contracts, and the reliance on key suppliers or customers. HUB assesses and manages coverage to mitigate the impact of business interruption on business income including contract revenues, licensing fees, consulting fees, funding grants or progress payments that would have been earned by or awarded to your R & D operation.
Insurance solutions are available to address the legal costs associated with defending patent claims made against your organization, or to fund the legal pursuit of others allegedly infringing on your patent rights.
We are very experienced at assessing potential malpractice and professional liability exposures and structuring coverage to mitigate this risk. We are well aware of the often complicated relationships and insurance issues that exist between coverage purchased on an individual basis through regulatory or licensing bodies, and the exposures and coverage for an institution/organization where the professional is employed or works. We regularly work with and place coverage with the major professional liability insurance facilities worldwide.
Damage to your building, contents, equipment or supplies is normally covered under property insurance policies. However, key issues unique to the sector include:
- Contractual requirements for equipment supplied under special loans/financing;
- Electronic information/intangible property;
- Replacement cost of technologies; Contamination perils such as, change in temperature/humidity and spoilage (both on and off premises or shipments in transit).
EQUIPMENT UNDER WARRANTY
New and evolving methods for arranging and financing warranty agreements require a working knowledge of the industry and risk financing. HUB has a proactive expertise in this area which puts us ahead of the competition.
KEY EMPLOYEE REPLACEMENT EXPENSES
When a key employee is killed or permanently disabled, a firm may face significant business interruption costs as well as hiring, training and relocation expenses. We specialize in sourcing a form of business interruption coverage designed to pay such expenses.
Life Sciences and Bio-Tech companies can be subject to unique environmental exposures, such as biocontaminants, or refrigerant and radioactive contamination, that present significant loss potentials. In some cases, coverage is available for sudden and accidental discharge, dispersal, seepage, migration, release or escape of such contaminants at your premises.