Businesses undertaking discovery, screening, preclinical research and related scientific services.

Where the sector’s exposures differ

Compound screening, assay development, contract research and licensing create different responsibilities. Financial loss from inaccurate data differs from loss of samples or injury in later human studies. The move from preclinical discovery to clinical development should trigger a fresh insurance review.

Insurance covers to assess

Review professional indemnity or research errors and omissions for services, property for samples and equipment, cyber risks and public or products liability as relevant. Participant injury cover needs separate assessment if the business moves into human studies. Contractual milestones and performance warranties may exceed policy cover.

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 customer alleges that a screening dataset was unreliable and repeats part of its research programme. The financial loss allegation needs review under the services wording.

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

Research methods; contract services versus own development; compounds and samples; collaborations; outsourced work; intended data use; territories and trial plans.

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

Is preclinical research insured as a clinical trial?

Do not assume so. Bench or non-human research and human participant trials are distinct activities that must be accurately described to the insurer.

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.