Businesses applying engineering and biological science to processes, materials, research platforms or products.

Where the sector’s exposures differ

Bioprocess design, scale-up advice, synthetic biology work and product supply can create different insurance exposures. Tell us about the processes and materials involved so insurers can assess potential financial loss, property damage or product claims.

Insurance covers to assess

Consider professional indemnity for process or design advice, products liability for supplied products, property and machinery exposures, and environmental cover where relevant. Pollution, contamination, biological materials and performance guarantees may be subject to exclusions. Do not assume ordinary liability covers every release or clean-up cost.

Policy features to discuss

We can discuss the insured activities, insured entities, territorial limits, defence costs, excesses and aggregate limits offered by insurers. If a customer requests particular insurance, let us know so we can consider the available cover. Legal interpretation, drafting and negotiation of contracts should be handled by your legal adviser.

An illustrative exposure

A client alleges that scale-up advice caused a production process to fail. Lost output, equipment damage and contractual performance claims need separate review.

This is a hypothetical example to explain cover questions, not a Mercantile client case or a paid claim. The proposed policy must be assessed before assuming any response.

Information needed for a quotation

Processes and deliverables; organisms or materials; containment and approval arrangements where applicable; design versus operation roles; pilot and commercial stages; indemnities and countries.

Also provide turnover, wages, subcontractor and labour-hire costs, the legal entities to insure, existing schedules and wordings, claims or known circumstances, and planned changes. A clear activity breakdown helps us approach suitable markets and compare the terms offered.

Common questions

What information will insurers need about biological materials?

Insurers need details of the organisms, materials and processes involved. Any approval or compliance questions should be addressed with your regulatory adviser or the relevant authority.

Can Mercantile review existing insurance?

Yes. Send the schedule and wording together with a description of your activities and key contracts. We can examine significant gaps and approach suitable insurers, subject to their appetite and acceptance. We assist Australian businesses from our Norwest NSW office.

Related insurance sectors

Our service focuses on insurance placement and policy cover. Product classification, approvals and regulatory compliance are matters for your regulatory adviser or the relevant authority.

Return to medical research insurance or explore all Life Science insurance sectors.

• Global Clinical Trial Insurance
• Clinical Trial Drug Logistics Insurance
• Life Science Research Consultant Insurance

Prepared by Mercantile Insurance Brokers. Updated 30 September 2026. General information for Australian businesses. Availability and cover depend on insurer acceptance, policy terms, exclusions, limits and deductibles.