Life Science Insurance

Life science companies face challenges that are inherent to their business, from the importance of ensuring their products are safe, to protecting their brand. Companies also face a range of changing and emerging risks including increasing regulatory scrutiny, supply chain complexities, sector consolidation, increasing litigation and concerns over data integrity.

Underpinning these challenges is the needed to protect your company’s reputation, especially in the age of social media. A product recall, cyber-attack or a clinical trial that goes wrong could have a massive impact on your company.

For more than 20 years, JLT has been an insurance leader in the life science sector. We help companies, including pharmaceutical firms, bio-technology companies, research organisations, medical device manufacturers and specialty chemical companies to identify and manage their risks and put in place effective risk financing solutions.

KEY Risks


Companies in the life science sector require a thoughtful, tailored and technical approach to assessing and designing insurance solutions. We invest in experts, specialist teams and capabilities to keep abreast of current and emerging risks and develop solutions for your precise requirements.

Our expertise includes:

We are specialist in designing and placing insurance programmes that are specifically designed for the individual needs of our clients. Our knowledge of the insurance market enables us to negotiate competitive pricing and coverage. Our deep technical knowledge enables us to advise our clients on policy cover best practice.

JLT helped create the first non-damage business interruption cover for life science companies, which covers loss of earnings and increased costs of working due to a supply chain interruption caused by non-physical damage events, such as regulatory shutdown, pre-emptive shutdown and import ban.

We are a market leader in placing product liability insurance for life science companies to protect against claims if your products cause personal injury or damage. 

We work with clients to design and place tailored, extensive cover that is appropriate to your specific requirements, including whilst products are in transit.

The unprecedented increase in litigation of life science companies increasingly exposes their directors. Our directors’ and officers’ liability specialists work closely with our clients to build the protection you need.

With growing concerns around data integrity and security, cyber insurance is becoming an essential cover for life science companies. We have had help developing market leading cyber insurance products that gives extensive coverage for your current and emerging risks.

Our product recall insurance gives broad, cost-effective protection for exposures relating to manufacturing, packaging and distribution.

Our specialist knowledge of the risks faced by life science companies transporting valuable and sensitive products has enabled us to  help develop bespoke marine cargo insurance solutions and claims expertise.

With increased restructuring and consolidation in the life science sector, mergers and acquisitions (M&A) insurance can play an important role as a deal-enabler by taking unwanted risk out of the process.

As a specialist in clinical trials insurance, we place insurance for thousands of clinical trials every year, from single territory trials to large global programmes for major pharmaceutical companies.


Product recalls in the pharmaceutical sector have surged in recent years. Pharmaceutical companies face unique challenges where products pose significant health risks as well as to brand and reputation. JLT Specialty has developed a global pharmaceutical product recall insurance providing a broad, exclusive and cost-effective solution. We offer a bespoke recall insurance covering exposure from manufacturing, packing and/or distribution. These exposures make the sector more vulnerable to recalls from contamination and mislabelling errors which can significantly damage the corporate brand and balance sheet.

Clinical trials liability insurance is required in all territories around the world, excluding the USA. It provides coverage for any bodily injury that occurs as a direct result of participation in a trial. In order to gain approval from local ethics committees and regulatory boards, the correct proof of insurance adhering to local legislative requirements must be included when submitting information for approval by an ethics committee.

Professional liability for the physician is excluded in a clinical trials liability policy, in the event that they did not follow the guidelines set out in the trial protocol. The investigator would be expected to have their own medical malpractice policy to cover them against any professional negligence. It is important to note that if the physician has followed the protocol correctly, a claim would be accepted.

Clinical trials insurance covers bodily injury (subject to policy terms/conditions) to a research subject due to their participation in a clinical trial, as set out in the protocol document. Research subjects are covered for all stages of the trial (i.e. screening, treatment and follow-up) as soon as they sign the informed consent form.

Insurers normally ask for a copy of the draft study protocol document (the document that describes the objectives, design, methodology, statistical considerations and organisation of a clinical trial) and informed consent form (the form in which a participant confirms his or her voluntary consent to participate in a trial) to be able to provide a quote. You can obtain a quote for your clinical trials insurance by contacting one of our clinical trials specialists.


  • Our knowledge of the life science sector and the insurance market enables us to develop bespoke, and often unique, solutions to the complex risks you face
  • Our people are approachable, collaborative and easy to deal with, and this is what makes us stand out. Our client first attitude is central to our culture; we are a people business and we pride ourselves on delivering personal service
  • Our commitment is to be accessible and accountable. Each client has a dedicated JLT account manager and our teams – including our senior executives – are highly responsive and available - always
  • Some risks can be difficult to transfer to the conventional insurance market due to prohibitive costs or capacity constraints. We are a leader in offering non-conventional solutions to your risks
  • Our analytics team provide you with valuable insights to help you make informed decisions about your risks and risk financing strategy. To do so, we have built sophisticated insurance risk models that help you benchmark your risks against relevant metrics and industry trends and measure how cost-effectively insurance can remove volatility
  • We are the only firm to look at risk on a future, five-year horizon – allowing us to think strategically about the risks and consider multiple “what if” scenarios.

Case Studies

Life Science Case Study One
Life Science Case Study Two

JLT were appointed to support a local entity of a large, global pharmaceutical company in the claims preparation process following a large and complex escape of water damage loss at a manufacturing site.

We worked with our client’s local entity and their risk management, marketing and finance teams to understand the impact of the loss on the business’s operations as the production area no longer met the good manufacturing practices (GMP). We helped the client to identify potential loss mitigation options and to build a business interruption model that measured the loss of margin arising from this incident across various countries and in multiple currencies.

This approach ensured that the client and JLT could successfully negotiate a settlement of the loss that maximised the payment under the policy.

JLT were appointed by a large pharmaceutical company as their global broker. We undertook a global insurance review for their subsidiaries worldwide in which the details of all local insurance policies were collected using JLT’s iRIS online system.

A review of these local policies highlighted a number of areas where the local covers duplicated with the client’s master global policies.

Overall, savings of USD 1 million were achieved by cancelling various local policies with no loss of cover.

JLT streamlined the insurance arrangements for all local subsidiaries and aligned this with the client’s corporate strategy by centrally advising the subsidiaries regarding their insurance needs.

Risk Management

We can help with loss prevention strategies to reduce the number of losses you have, reduce your claims costs and potentially reduce your premiums. Understanding your business is central to what we do, so we are well placed to help you assess critical risks to your business, as well as to mitigate or eliminate them. 

We have in-depth experience in helping life science companies to identify and manage their supply chain risks by mapping and quantifying the exposures and identifying critical points in your supply chain.

JLT has extensive modelling and analytics capability. We use this resource to provide clients with valuable insights on:

  • risk tolerance and risk appetite
  • exposures analysis
  • claims projections
  • insurance programme design efficiency based on forward looking expectancies.

This capability helps our clients to optimise their insurance arrangements so that they retain risk where it is efficient to do so, and utilise insurance to efficiently fund risks that their company is unable or unwilling to retain.

We can help you to be better prepared to deal with the impact of a major loss so that you can minimise your business downtime.

Working with your manufacturing, IT, quality, R&D, compliance teams are backed with commercial experience, we have supported enterprise risk management (ERM) programs from the inside as risk managers and as consultants. We bring all our knowledge to develop customers ERM programs that meet our clients unique needs based on the various global ERM frameworks (ISO, COSO, etc).

We recognise the importance of managing and maintaining highly protected risk facilities to protect your critical and research operations. We have a global team of engineers and a wider network of consulting specialists with a broad range of industry experience and a high level of technical expertise in risk and loss control services.


We have the experience, resources and industry knowledge to manage large or complex claims.

When you have a loss, we act as your advocate and focus on managing the claim process – helping to resolve any issues so that your claim can be settled promptly, minimising disruption to your business.

We specialise in helping to settle complex or difficult claims and resolving disputes. This can involve:

  • Arranging access to surveyors, lawyers and engineers, or working closely with your own advisors
  • Advising on claims strategy to create a level playing field when dealing with insurers
  • Investigating, measuring and preparing claims submissions to insurers
  • Negotiating and settling claims
  • Intervening to prevent disputes and spiralling legal costs
  • Pre-planning responses to potential major losses with loss scenario testing and training.

Our in house claims specialists sit alongside our brokers to ensure an efficient, joined up service for our clients.

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