Berkley Life Sciences, a member company of W. R. Berkley Corp., announced the release of new insurance created to address attempts to hold pharmaceutical and medical device companies liable because their drugs, devices or other life science products or components are in short supply.
According to a release, Berkley Life Sciences has designed insurance specifically to address product shortage losses. Provided as an enhancement to its LS Prime Insurance Policy, Product Shortage Coverage responds to third party claims of injury due to the unavailability or rationing of a life science product. Even though a court may refuse to sanction a product shortage claim, coverage is available for the cost of defense.
Berkley Life Sciences' insurance product reimburses the insured for first party costs, which can include responding to the FDA; monitoring customers' health conditions throughout the shortage; and locating stolen or counterfeited product.
"The AMA has declared the growing unavailability of life saving and life enhancing products to be a 'national public health emergency,'" said Jill Wadlund, President of Berkley Life Sciences. "This pronouncement has spawned attempts by some law firms to hold the pharmaceutical and medical device industry responsible for critical product shortages. Berkley Life Sciences continues to pay close attention to the issues impacting our customers, and has responded by developing a life science-oriented, innovative coverage to address both the litigation risks and increased first party costs associated with a product shortage crisis."
LS Prime is issued in 49 states through Gemini Insurance Company, and in Delaware through Nautilus Insurance Company.
Berkley Life Sciences is a provider of insurance products and services to life science customers.
((Comments on this story may be sent to email@example.com))