Biotech Business Insurance: Get a Quick Quote

BIOTECHNOLOGY

Biotechnology Life Sciences Business Insurance

Research and development, clinical trials, laboratory, diagnostics, gene therapy: the risks are high and multiple. Protect your biotech with specialized RD, IP, testing, and cyber coverage.

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Starting at $5,000

Annual premium

$5M to $25M

RC/PL Limits

Health Canada

Compliant

AMF

Certified brokers

Biotechnology companies in Quebec concentrate risks with a high financial impact : RD investments over 5-10 years, high-value laboratories, clinical trials involving human subjects, hazardous biological material, crucial intellectual property, regulatory requirements from Health Canada and FDA, and institutional investor expectations. A specialized biotech policy includes: Pharmaceutical Product Liability, Clinical Trial Liability, Professional EO, Cyber (IP Protection), Laboratory Property, DO Executives. Premiums start at $5,000/year and can go up to $100,000+ for advanced biotechs.

Biotechnology Laboratory — Assur360 Insurance

IN BRIEF

Biotechnology Business Insurance

Biotech firms provide highly specialized equipment (centrifuges, sequencers, bioreactors), CR for clinical trials, intellectual property and risks of biological contamination.

Specialized markets: Biotechs with clinical trials require Lloyd’s contracts for clinical trials liability. Typical limits $2-10 million depending on the trial phase (Phase 1 vs Phase 3).

The 6 essential protections for a biotech

Pharmaceutical RC

Side effects, injuries caused by a marketed product. Limit $5 million to $25 million+.

Clinical trials

Responsibility towards human subjects during phases I/II/III. Required by Health Canada and REB.

EO RD and consulting

Analysis errors, erroneous data, advice to pharma or biotech partners.

Laboratory Goods

High-value equipment, samples, cultures, freezers -80°C, cryogenics, critical equipment.

Cyber and IP

Protection of research data, patents in progress, industrial secrets, ransomware lab.

DO Leaders

Lawsuits of investors, shareholders, partners — essential in the context of fundraising.

💡 Broker’s advice

In biotech, the biggest exposure that is often underestimated is clinical trial liability. A subject who develops a serious adverse reaction may trigger a 7-8 digit lawsuit. Health Canada requires specific proof of insurance before a trial is approved. Ethics committees (REBs) are asking for minimum limits of $5 million for Phase I, $10 million+ for Phase II/III. Plan these costs into your trial budget from the initial protocol.

Frequently Asked Questions

How much does insurance cost for a biotech in Quebec?

Highly variable. Pre-clinical biotech (1-20 employees): $5,000 to $25,000/year. Biotech in clinical trials: $30,000 to $100,000+/year depending on phases and indications. Biotech marketed: $100,000 to $1 million+/year in product liability. Plan for a dedicated budget line in your financing rounds.

Do clinical trials require specific insurance?

Yes, mandatory. Health Canada and REBs (Research Ethics Boards) require a clinical trial CR policy with phase-appropriate limits. Phase I: $5 million minimum. Phase II/III: $10 million to $25 million. Mandatory retroactive coverage for late claims (deferred effects).

Can our pre-income biotech take out insurance?

Yes. Most biotechs insure themselves from the pre-clinical phase, before any return. Investors almost always demand EO, General RC, and DO as early as Series A. The cost is amortised by the financing and demonstrates the maturity of the company.

Our laboratory contains high-value samples and equipment — covered?

Yes, via laboratory property insurance. Covers: -80°C freezers (irreversible sample loss), bio-reactors, sequencers, PCR, microscopes. Essential clauses: “breakdown of refrigeration” and “contents in transit”. Inventory valued annually.

Is intellectual property (patents, secrets) covered?

Partially. Cyber policies cover data theft (exfiltration), industrial espionage, unauthorized publication. Patent prosecution (infringement) requires a specialized “IP defense” policy ($30,000 to $100,000/year). Critical for biotech with heavy IP.

Big pharma contracts require high insurance — how much?

Licensing or RD agreements with Canadian or American big pharma typically require $10 million to $25 million in RC and EO, plus a DO. Mutual indemnification clauses are complex — have a lawyer AND your broker analyze it BEFORE signing.

Is bioinformatics telecommuting staff covered?

Yes, via the standard “off-premises activities” addendum. Bioinformatics, data analysis and management operations can be done remotely without major changes to the policy, as long as laboratory operations remain on a declared site.

Our biotech is going public — impact insurance?

Major impact. A public DO (DO for a listed company) replaces the private DO, with limits of $10 million to $50 million and premiums 5 to 10 times higher. Securities laws increase the exposure of executives. Plan 6 months before IPOs with specialized insurers.

Are internships and student-researchers covered?

Yes, if declared in your policy. University interns (HEC, UdeM, McGill, Poly) are often covered by their university during the internship. Ask for proof of cross-insurance and coordinate with your RC. Paid trainees become employees within the meaning of the police.

Biotechs throughout Quebec

Assur360 supports businesses throughout Quebec: Montreal, Quebec City, Laval, Gatineau, Longueuil, Sherbrooke, Trois-Rivières and Saguenay. With a dense biotech ecosystem in Montreal (IT parks, McGill/UdeM campus), oncology biotech in Laval, life sciences in Sherbrooke, research centres in Quebec City, spin-offs in Trois-Rivières: our brokers know the realities of Quebec biotechs in all phases.

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