Five Insurance Tips for Biotechnology Companies Facing Product Recalls or Liability Claims

by Jonathan M. Cohen
Volume 12, Issue 2 (Summer 2013)

Biotechnology companies — those that research and manufacture products through the use of biological techniques such as genetic engineering and the development of specialized strains of biological substances — constitute an increasing segment of the US economy. These companies might: (a) create a new type of insect- or drought-resistant corn by the modification of genes; (b) alter naturally occurring enzymes to aid in manufacturing or to help produce foods; (c) use recombinant DNA to create medicines that are remarkably effective in curing or treating disease; or (d) use any of a number of other techniques to create beneficial and potentially lucrative products. Just like other industries, biotechnology groups can be faced with recalls of their products, either voluntary or government-mandated, or claims that their products have caused bodily injury or property damage to their customers. Because biopharmaceuticals are produced by — or extracted from — a biological source, the chances of a product recall are higher than that of a synthesized drug. In April 2012, a report by GBI Research, an independent research firm, concluded that biologics were involved in more recalls, voluntary or mandatory, than drugs from other sources for the four-year period from 2007 through 2010...

Citation:
Cohen JM. Five Insurance Tips for Biotechnology Companies Facing Product Recalls or Liability Claims. BioProcess J, 2013; 12(2): 43-46.
http://dx.doi.org/10.12665/J122.Cohen.

Posted online July 24, 2013.