3 types of Management Liability for Life Science businesses

Management Liability may be a little known cover option to some, but it’s important to know what it is and how it can protect your business, particularly those within the Life Sciences industry. The word “liability” seems to be in constant circulation when talking about business insurance. You need to cover your responsibilities for your employees, members of the public, the products you sell or distribute and your actions as a company. That’s a lot of liabilities to consider. Life Sciences businesses are often particularly vulnerable to legal action – this is due to the high-risk nature of developing medicines, therapies and devices, the harm which a wrong decision could potentially cause, the involvement of regulatory bodies and our increasingly litigious society. As a business, you might already have your Public, Employers’ and Product Liability in place. Management Liability relates to your actions as a company, covering key individuals as well as the entity of a business for a whole host of issues surrounding decisions, mistakes and wrongful activities. Because these areas can be so complex, and the legislations around them very specific, a Management Liability policy tends to be split into three levels of cover; Directors and Officers Insurance, Employment Practices Liability and Corporate Legal Liability.
  • Directors and Officers Insurance – The Individual Directors, business owners and senior management could take decisions, or make errors, that land them in hot water legally.Accusations of alleged wrongdoings can come from many different sources, including other directors and shareholders, and it can be the individual who is personally held accountable.Directors and Officers Insurance protects them from any large defence or compensation costs, fines or penalties, providing the allegation doesn’t relate to any intentional breaches, such as fraud.
  • Corporate Legal Liability – The Company If there is a claim for fraud, and the company comes under fire for the wrongdoings of an employee, then Corporate Legal Liability will cover them for any subsequent legal action.It also protects for other violations, such as trespassing and water contamination, if, for example, a company is accused of causing environmental damage by dumping waste.
  • Employment Practices Liability – The Employee So complex are the legislations around employment law that dedicated insurance can certainly show its worth.Employment Practices Liability covers unfair dismissal, sexual harassment, and discrimination among other employment issues. With claims of unfair dismissal so common, it’s not a cover option to be missed off the checklist, as it could save your business from large costs in the longer term.
Safeguard are specialists in Life Science Insurance. To find out more, get in touch on 08456 888 284.

Tech takeover presents new challenges for biomedical companies

The pharmaceutical industry is facing some major changes. Technological advances to data collection have made processes faster and presented new opportunities for diagnosis and development, while an evolving regulatory landscape presents the chance for greater collaboration between doctors, patients and pharmaceutical companies. So what will this new, tech-led sector look like? Robin Robinson for PharmaVoice writes that the Life Sciences industry should “reinvent itself into a real-world, value-based — as opposed to a volume-based — ecosystem”. How do the experts suggest your company should react? • Products must add value Rather than a one-size-fits-all approach, informed patients are now seeking out options and requesting a more bespoke approach to their treatments. As such, consumer brands will need to create products which add value to their customer’s lives. “The industry has traditionally focused on intermediaries as its customer, stopping short of engaging the patient in an ongoing dialogue,” explains Cynthia LaConte, CEO of Dohmen Life Science Services. Developing at-home medical treatments, wearable or app-based technology and flexible, cloud-based communication with medical professionals could be key going forward. • Changing the way we research Cognitive computing, machine learning, artificial intelligence... under many monikers and with subtle differences, the concept of computing systems which can analyse large amounts of data is set to revolutionise the sector. It can find patterns in genome sequencing or identify tumours from imagery, recommend treatments and establish their effectiveness. And considering the amount of medical data being produced, it sounds like we couldn’t do without their help. “The amount of health information generated is only going to increase in volume beyond anyone’s imagination. There are more than 700,000 new articles published each year and the amount of medical literature generated doubles every three to five years,” writes Robinson. • Developing medical technology Deloittes’ paper 2017 Global Life Sciences Outlook predicts the Global medical device and technology (MedTech) market to grow at a compound annual growth rate of 5.3% leading up to 2020. The key areas driving this growth? Deloittes lists the development of minimally invasive devices, in vitro diagnostics and sensor technology as major players. It predicts that within 20 or even 10 years, the vast majority of devices will have embedded sensors. Keeping up with the pace is key for achieving sustainability, argues Robert Merkel, healthcare and life sciences leader at IBM Watson Group. “Separating success from failure is an organisation’s ability to create game-changing insights and then being flexible enough to adopt a new business model,” he says. If you are utilising new technology, developing new products or changing your processes, you may need to inform your insurer. For more information, call Safeguard on 08456 888 284 or email sales@safeguardinsurance.co.uk to talk to our team.

Find us at 2018’s BIBA Conference

One of the highlights in the insurance broking calendar is just around the corner, as Manchester Central plays host to the 2018 British Insurance Brokers' Association (BIBA) conference. Taking place over two days from 16-17th May, this high concentration of insurance professionals gathered in one place will form a hub of networking in and amongst a programme of first-rate speakers and seminar leaders. Over 7,300 delegates attended in 2017, and Safeguard Director Stewart Johns, a regular to the conference, will be joining this year’s attendees for a chance to meet like-minded business representatives and peers from around the country face-to-face. If you’re planning on heading to Manchester yourself, be sure to catch up with him while you’re there. “Whether you have a specific insurance query or would just like general discussion, I’m always happy to have a catch-up. Hopefully I’ll see you there!” says Stewart. Get in touch with Stewart directly by calling 01322 337 557 or emailing sj@safeguardinsurance.co.uk.

Could human genome editing eradicate genetic diseases?

It was only in 1953 that James Watson and Francis Crick discovered the double helix of human DNA. But the following 65 years have yielded scientific advances at an incredible rate. Today we have a much deeper understanding of how genomes are passed on, and what causes genetic diseases. Could medical science soon eradicate those causes entirely?   What is a genome? Genomes are essentially genetic material. When we reproduce, the DNA’s double helix splits in two, passing on half of each parent’s DNA to the child. Unfortunately, this includes faulty genes and mutations which can occur as cells divide. Even a small genetic error can cause a serious disease.   How can genomes be edited? Five years ago, a form of gene editing was discovered which uses “molecular scissors” to cut out, replace or tweak one very specific strand of DNA. The process is called CRISPR Cas9, or CRISPR. It is now used in lab trials all over the world to manipulate the genes of plants and animals.   What could this mean for medicine? Scientists hope eventually they will be able to edit the strands of human DNA which cause currently untreatable genetic disorders, including Huntingdon’s disease and cystic fibrosis. Early studies suggest gene editing for therapeutic purposes could be a reality within the next decade. The first human trials are already underway in China and have been approved in the US – injecting patients with modified cells, rather than editing cells inside the patients. Nessan Bermingham, CEO of Intella Therapeutics, which is developing the technology for use in humans, explains CRISPR could potentially revolutionise healthcare. “This technology has the potential to allow us to target multiple regions of DNA at the same time,” he says. For example, one Intellia Therapeutics study showed that a single injection into an animal can slow down a toxic protein from being produced by 97%.   Will genome editing lead to ‘designer babies’? It’s important to note that CRISPR will only alter the individual DNA that is edited. This is known as somatic editing, meaning any changes made won’t be passed down to the patient’s offspring. To make alterations which would be passed on to future generations, single-celled human embryos would need to be manipulated before pregnancy. Though this concept is being explored for research purposes, we’re a long way off human trials or being able to make changes to the genes of future generations.   What other uses could the process have? It certainly seems possible that, after extensive trialling, genome editing could eventually eradicate genetic diseases entirely. But that’s not all. It has long frustrated medical science that a certain type of white blood cells called ‘t-cells’, which specifically seek out and fight viral infections, don’t recognise cancer cells as a threat – because they are mutated versions of the patients’ own cells. However, Dr Martin Pule of University College London and his team have been able to genetically alter t-cells to attack cancerous cells. A US version of the therapy, called CAR-T, has an 83% remission rate, but currently costs $475,000 per patient. This is just one of the many potential uses for this technology.   Does your business work within the life science industry? Protect your biomedical research with specialist insurance from Safeguard Insurance. Contact us now for a chat with one of our specialist advisors.