Medmarc Provides Enhanced Lower Cost Products Liability Policy for Smaller-Sized Healthcare Technology Companies

CHANTILLY, Va., April 7 /PRNewswire/ -- Medmarc announced today it now provides enhanced lower-cost products liability protection for smaller-sized healthcare technology companies.  Firms developing, testing, and marketing innovative products which save and improve the quality of life have a new option.

"Executives of clinical trial stage and emerging growth(1) healthcare technology companies operate in a world of unprecedented business challenges including the threat of punishing clinical trial and product liability litigation.  They need to manage the risk of lawsuits in a cost effective and efficient manner,” said Medmarc Senior Vice President, Tom Konopka.

The new offering from Medmarc satisfies this requirement.  It provides comprehensive balance sheet protection and reduces clinical trials/products liability risk at a reduced fixed, guaranteed cost.

Cost savings are based upon the type and length of time a product is being tested or marketed and the amount of insurance purchased.   The premium decrease for companies requesting coverage for the first time from Medmarc can be up to 30% less than the older priced insurance policies.

Most insurance policies available to healthcare technology companies contain premium audit provisions which compare the projected and actual number of clinical trial test subjects and/or sales revenue.  When the actual values are greater than projected there is an additional premium charge.  Medmarc insurance policies for clinical trial-stage and emerging growth companies are a guaranteed fixed cost.  They do not contain a premium audit condition.  

Further, a feature commonly referred to as "tail" coverage is available to Medmarc's clinical trial-stage policyholders at a lower cost than typically offered by other insurance companies.  "Tail" coverage refers to the ability of policyholders to lengthen the period of time for reporting claims against a specific insurance policy.  Most insurance companies offer up to a five year extended reporting period and charge as much as 200% of the insurance policy premium for this coverage.  Medmarc will provide a one year "tail" at no charge and offer up to a six year plus 90 day "tail" for a maximum charge of only 100% of the policy premium.

Medmarc policies also provide coverage for a wide array of business partners who help clinical trial and emerging growth companies test and market their products.  Included in this list are medical staff members, contract or clinical research organizations, clinical research coordinators, monitors or investigators, scientific advisory board members, independent engineers or consultants, institutional review board members or medical ethics committees, and authorized representatives.

About Medmarc

Created in 1979 by the healthcare technology industry, Medmarc's purpose is to be the superior provider of liability insurance protection and related risk management solutions and to support the development, testing, and delivery of products that save lives and improve the quality of life.  Further, through strategic alliances with The Hartford Financial Services Group and Biomedic-Insure, Medmarc policyholders benefit from all-lines property and liability insurance protection, loss prevention services and claims management tailored to the needs of medical technology and life sciences companies worldwide.  www.medmarc.com

Disclaimer

All policies must be examined carefully to determine suitability for your needs and to identify any exclusion, limitations, or any other terms and conditions that may specifically affect coverage.  In the event of a conflict, the terms and conditions of the policy prevail.  All Medmarc coverages described in this document are offered by Noetic Specialty, one of the property and casualty insurance companies within the Medmarc Insurance Group.

(1) Clinical Trial Stage companies are solely engaged in human testing of products with Food and Drug Administration (FDA) enforced guidelines and those of equivalent authorities outside of the United States.  Emerging Growth Companies are defined as firms with projected revenues of up to $10 million.

SOURCE Medmarc