Businesses developing biological products, biotechnology platforms and related research or commercial services.

Where the sector’s exposures differ

A biotechnology business may combine laboratory research, contract services, licensed intellectual property and commercial product supply. The insurance review should track the development stage and actual activities, rather than treating biotechnology as one uniform risk.

Insurance covers to assess

Potential covers include professional indemnity or errors and omissions for services, products liability, participant-injury insurance where relevant, property, cyber and management liability. Describe any biological materials or GMO work to the insurer; we do not advise on its regulatory treatment.

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 development service produced unreliable data, delaying a programme. That financial loss differs from an allegation of injury from a commercially supplied product.

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

Technology and development stage; research versus clinical or commercial use; services and revenue; samples and materials; collaboration agreements; territories and relevant approvals.

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

Does a research policy automatically cover commercial launch?

No. Commercial manufacture and supply, clinical work and new territories should be agreed with the insurer before the activity begins.

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 pharmaceutical insurance or explore all Life Science insurance sectors.

• Pharmaceutical Manufacturer and Importer Insurance
• Pharmaceutical Licence Holder and Sponsor Insurance
• Pharmaceutical Distributor 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.