How to choose the right Professional Indemnity Insurance in the life sciences

In the life sciences sector, expertise is everything. Whether you’re running a Contract Research Organization, offering regulatory consulting, or providing specialist design and testing services, your reputation rests on the quality of your advice and work. But even the most skilled professionals can face allegations of error, omission, or negligence.

That’s why Professional Indemnity (PI) insurance - also known as Errors & Omissions (E&O) cover- is essential. The challenge isn’t just having a policy, but making sure it’s the right one.

Life Sciences Insurance

 

The essentrial checklist

Here are five key considerations when evaluating PI insurance for life sciences:

1. Scope of coverage

• Does the policy cover all the services you provide (e.g., consultancy, research, testing, data analysis, regulatory guidance)?

•  Are emerging areas like AI-enabled diagnostics, digital health solutions, or data-driven research included?

 

2. Jurisdiction & territory 

• Many policies have territorial limits. If you’re advising or contracting internationally, especially in the US where litigation is high-risk, make sure your policy extends to those regions.

 

3. Defence costs

• Legal defence often costs as much (or more) than settlements. Check if defence costs are covered in addition to the indemnity limit or if they erode this limit. The difference can be huge.

 

4. Contractual requirements 

• Increasingly, sponsors, pharma partners, and research institutions require minimum levels of PI cover before awarding contracts. Review your client agreements: your policy should align with these obligations.

 

5. Retroactive cover & run-off protection

• Errors can come to light years after the work was completed. Make sure your policy provides retroactive cover for past work and run-off cover if you retire, sell, or restructure.

 

Conclusion

Professional Indemnity (PI) policies in life sciences are not “off the shelf.” Work with a broker who understands the sector. A generic PI policy may leave dangerous gaps, especially around clinical trial activities, IP disputes, or cross-border exposures.

Professional Indemnity (PI) insurance isn’t just a compliance box-tick. It is a safeguard for your reputation, your contracts, and your ability to keep innovating. Getting it right means you can focus on advancing science with confidence, knowing your expertise is protected.

^{This is for general information only. Cover is subject to insurers policy terms, conditions, and exclusions.}