Berkshire Hathaway Specialty Insurance (BHSI) has introduced a specialised management liability insurance policy aimed at Australia’s life sciences, biotechnology, and pharmaceutical companies.
The product is designed to address governance, funding, and operational exposures unique to research-driven organisations.
This new policy supplements BHSI’s broader management liability offerings for private firms and not-for-profit entities.
It has been tailored to fit the evolving risks facing life sciences businesses, including protections not commonly provided in traditional policies. These include coverage for directors, officers, and members of scientific or medical advisory boards, as well as features that address private capital raising and insolvency scenarios.
Jessica Jefferies, underwriting manager for national brokers, executive and professional lines at BHSI Australia, said the new solution reflects the company’s understanding of the local sector.
“Life sciences is one of the most promising industries in Australia, and we are thrilled to be able to provide an innovative solution to support the industry,” she said.
The policy also includes extensions for US exposure, recognising that many Australian biotech firms engage in activities such as US clinical trials or pursue approvals from the Food and Drug Administration (FDA).
The policy launch occurs at a time when insurance affordability is under scrutiny in another specialised field – bariatric surgery.
A recent academic and industry-backed survey showed that a growing number of surgeons in this area are reassessing their careers due to the steep rise in professional indemnity premiums.
Research conducted by the University of Notre Dame Australia, Flinders University, and the Australian and New Zealand Metabolic and Obesity Surgery Society (ANZMOSS) revealed that 37% of bariatric surgeons are considering exiting the profession.
Survey results indicated that average premiums have risen by over a third within a year, with figures now approaching $70,000 annually for many and exceeding $500,000 for some.
Associate Professor Nicholas Williams, a bariatric surgeon and contributor to the study, warned that the current cost environment could restrict patient access.
“New medications such as Ozempic will be a big part of the future landscape of obesity care, but surgery is still the gold standard because the medications are expensive, they are hard to access, and they need to be taken lifelong, which is often not appreciated,” he said.
He also pointed to the importance of maintaining viable surgical pathways.
“Obesity disproportionately affects lower socio-economic groups, regional, and remote communities and Indigenous populations,” Williams said. “These are the patients with the greatest need for access to obesity care, and if surgeries are not available publicly, then we at least need them to be available as cost effectively and as widely as possible in the private sector.”
