The pharmaceutical industry faces numerous commercial insurance challenges, including the limitations of coverage for product liability, clinical trials, and intellectual property risks. Commercial insurance policies may not adequately cover the specific risks associated with pharmaceutical manufacturing, distribution, and research and development activities. By implementing a captive insurance strategy, pharmaceutical companies can tailor their coverage to include specialized policies that address these unique risks. Captives can provide coverage for product liability claims, clinical trial-related liabilities, and intellectual property infringement risks, offering comprehensive protection that aligns with the specific needs of pharmaceutical businesses. It's important to mention that specific policies and coverage options within captive insurance programs can vary based on the needs and circumstances of each business. The examples provided above are generally applicable in nature and may require further customization and consultation with insurance professionals to fit the specific requirements of the businesses mentioned. In summary, commercial insurance arrangements may not be sustainable for middle-market businesses due to their lack of flexibility and customization. While billion-dollar companies can establish their own insurance companies, middle-market businesses face challenges in doing so. Captive insurance can be a viable alternative for middle-market businesses, allowing them to address their unique risk profiles and gain greater control over their insurance programs. By reinvesting unused written premiums, middle-market businesses can strategically allocate resources to fuel future ventures and support their growth and innovation agendas.
37
Made with FlippingBook - Online Brochure Maker