Nizel Pradhan
Startups can now access specialized coverages previously limited to larger companies.
Vouch, a commercial insurance business focused on tech companies, announced its expansion into the life science category with the introduction of new proprietary insurance solutions.
For decades, life science startups have struggled to acquire business insurance. Large insurance carriers typically do not insure early stage life science companies, especially those that are pre-revenue. When they do, minimum premiums are prohibitively expensive.
George Aliaga, Vouch’s Health & Life Sciences Vertical Lead, sees tremendous opportunity to support this category during a technological inflection point, as life science startups digitize their business models and increase investment in artificial intelligence to accelerate R&D cycles.
“We believe the most innovative medical advancements are happening right now in incubators around the country, and these startups need help protecting their business in a constantly evolving risk environment,” said Aliaga. “For example, artificial intelligence techniques are being used for drug discovery, disease diagnosis and patient risk identification. AI use in life sciences is rapidly maturing, and groundbreaking startups are emerging with innovative tech as a result.”
Vouch is the insurance of the technology industry. Since 2018, Vouch has revolutionized the buying experience and quality of coverage available to tech companies with the introduction of 10 proprietary coverages and a specialty brokerage. Now, the company is offering the same expertise and proprietary capabilities to the underserved life science startup ecosystem.
Life science startups face unique risks. Vouch offers a suite of exposure-driven coverages to ensure comprehensive protection from R&D through product commercialization:
- Change in Controlled Environment Coverage – For perishable property prone to spoilage
- Vivarium Coverage – For animals used in R&D, breeding or biological product harvesting
- Clinical Trials Coverage – When sponsoring or operating human clinical trials
- Medical Malpractice Coverage – When offering medical treatment or advice that may create medical malpractice exposure
- Specialized Contamination Coverage – For products susceptible to contamination by radiation, bacteria, mildew, mold, microorganisms, viruses or pathogens
- Condemnation of Undamaged Stock Insurance – For situations where product is not damaged but is deemed compromised and condemned by the FDA
In addition to the new proprietary coverages launched today, Vouch also offers life science startups access to its specialty brokerage, which can procure additional policies from the broader insurance market to provide comprehensive and holistic insurance solutions.
While insurance provides necessary protection, coupling an insurance program with expert advisory best positions a startup to withstand future risk.
“Since they operate in a fast-paced environment with complex and unique risk profiles, life science startups not only require specialized coverage, but an advisor who understands their needs,” said Aliaga. “Our life science Insurance advisors are trained to provide expert guidance for startups through each of their stages and milestones.”
Insurance limit advice and pricing, tailored to each stage of a life science startup, is available through Vouch at https://www.vouch.us/. Additional information on the Health and Life Science offering is available at https://www.vouch.us/verticals/health-life-sciences.
