CHANTILLY, Va., Feb. 6, 2014 /PRNewswire/ -- The Medmarc Insurance Group (Medmarc) announced today that it is now offering an Errors and Omissions Liability (E&O) policy. This coverage is designed for life sciences manufacturers, suppliers, and distributors of medical technology and pharmaceutical products and covers third-party financial loss.
"While manufacturers and distributors readily understand their need for protection against products liability claims—allegations that their product caused bodily injury or property damage—many do not consider their vulnerability to customer claims for consequential financial losses. Financial loss associated with a defective product or component part can be an unexpected and costly burden. Medmarc's new E&O coverage will respond if the insured's negligence in manufacturing or servicing causes a customer financial loss, including expenses associated with a recall," said Mary Todd Peterson, President of Medmarc Insurance Group.
Cost considerations and greater specialization have caused many companies to outsource some or all of the design, production, quality assurance and regulatory approval processes for their products. With each additional party in the supply chain, the probability of error and corresponding allegations of financial loss increase. Ms. Peterson noted, "In the life sciences space where speed to market, agility, and capital conservation mean so much, companies of all stages need protection against the broad range of financial risks posed by their products, and Medmarc's new coverage has been developed to meet this need."
Medmarc's E&O policy covers third-party financial loss resulting from our insureds' negligence in the manufacture, design, production, distribution, processing, preparation, assembly, blending, mixing, compounding, packaging, labeling or storage of a product and defines "financial loss" broadly. Medmarc's new E&O coverage, coupled with its long-standing coverage for products liability risks, provides our customers with comprehensive protection for the risks facing them in today's ever-changing environment.
Medmarc is one of the nation's leading underwriters of products liability insurance for medical technology and life sciences companies. Medmarc offers loss control services and claims management tailored to the needs of life sciences industry. The Medmarc Insurance Group is a ProAssurance Company and its member companies are rated "A" (Excellent) by A.M. Best.
- Health Care Industry