Insurance for Vancouver Medical Device Companies
Vancouver medical device companies are exposed to unique risks that require customized business liability insurance.
Medical device manufacturing companies, retailers and wholesalers of medical devices, supplies and equipment, and medical design companies must be protected from any liability claims. Liability claims can include product recalls or claims that a product caused a bodily injury or property damage to a third-party such as a medical device user.
Lawsuits can be financially devastating. Vancouver medical device companies need business liability insurance that is specifically tailored to their needs and risk management profile.
Whether you are located in the Greater Vancouver area, on the Lower Mainland, or elsewhere in British Columbia, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your business.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Vancouver medical device company’s specific needs.
Examples of medical device companies that need customized insurance
- Diagnostic imaging
- Consumables such as masks, syringes, gloves, catheters, alcohol swaps, antiseptic wipes
- Patient aids
- Orthopedic and prosthetic
- Dental products
- Other, including wheelchairs, ophthalmic instruments, anesthesia apparatus, dialysis apparatus, blood pressure monitors, endoscopy apparatus
Liability insurance is an essential part of your medical device insurance package. Here are the liability coverages that you need to help protect your Vancouver medical device company from lawsuits and claims of negligence.
Product liability insurance
Product liability insurance protects your Vancouver medical device company against claims of property damage or bodily injury arising from the use of the products that you sell, rent, or manufacture.
Should your Vancouver medical device firm be sued, this type of insurance would help cover third-party medical costs, your company’s legal defense fees, repairs, and lost wages.
Most claims typically fall into one of the three product liability categories:
- Manufacturing defects: An error or flaw was introduced, whether intentionally or not, during the manufacturing of the medical device product, causing it not to function as intended.
- Design defects: Insufficient care was given to the design of the product, causing it to be faulty, unreliable, or unfit for use.
- Missing or incorrect warnings, instructions, and labels: Directions for using the medical device were not included or were inadequate, resulting in a consumer using the product in an unintended way.
Directors and Officers liability insurance
Directors and Officers insurance provides financial coverage for legal expenses to help defend a board member or officer of your Vancouver medical device company against claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.
This type of insurance also covers:
- Negligent acts and allegations of misrepresentation
- Breach of legal or fiduciary duties
- Decisions that result in adverse financial consequences for shareholders
- Wrongful dismissal and employee discrimination claims
- Failure to adhere to federal and provincial laws and regulations
Commercial general liability insurance
This is necessary liability insurance for medical device companies in Vancouver. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.
If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Vancouver medical device firm in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What kind of risks does commercial general liability insurance cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Vancouver medical device company. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.
The protection that umbrella insurance provides applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
Professional liability insurance
Professional liability insurance helps protect Vancouver medical device businesses from claims of negligence when they are performing their duties or providing services. It’s also called errors and omissions insurance.
In the case of a negligence claim, for example, if your medical device company has professional liability insurance it would pay for some or all of the claim costs.
Note: It’s important to understand the specifics of your professional liability coverage to ensure adequate protection for your Vancouver medical device company.
Cyber liability insurance
You keep sensitive financial information and data belonging to your clients. Your medical device firm could be hacked by cyberthieves. Cyber liability insurance will help protect the firm financially should there be a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
What other insurance do Vancouver medical device businesses need?
Product recall insurance
This type of insurance helps you recover the cost of recalling products that pose health risks to consumers due to a defect, whether the recall is voluntary or ordered by a government or regulatory agency. Product recall insurance helps cover your such things as disposal and restocking costs.
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Vancouver medical device company if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
Business interruption insurance supports you when your Vancouver medical device firm can’t operate due to a covered loss.
There are a number of losses that can force your medical device business to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial auto insurance
If you are using your car for your job in the medical device industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package. If you have five or more vehicles that are used by your medical device business, you will need fleet insurance.
Inland marine insurance
Inland marine insurance provides financial protection for your medical device business’s property that is transported on land. This can include equipment and products that are being shipped “inland” by vehicles, trucks, and trains.
Do you do business in the U.S.?
Do you have the right business insurance to address any cross border gaps in coverage? Cross border insurance for your Vancouver medical device company needs to meet all applicable U.S. state insurance laws and regulations.
Admitted insurance
Your medical device company will need admitted insurance if you do business in the United States. Admitted insurance is coverage offered by insurance providers who are licensed to operate by state insurance departments.
Many jurisdictions require companies to have locally admitted policies in place if they have physical assets, such as buildings, stock, raw materials, in that jurisdiction including most of the U.S.
Here’s what you need to know about cross border insurance.
How much does Vancouver medical device insurance cost?
The following factors are usually considered when determining the cost of your Vancouver medical device business insurance:
- Location(s)
- Services provided
- Number of employees
- Years of experience
- Annual revenue
- Any past claims
- Sources of revenue, for example from manufacturing, distributing, retailing
- Revenue from the class of device(s) as defined by Health Canada or the FDA
- Product information
- Risk management and quality control information
What do I do if I have a claim against my Vancouver medical device business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s an insurance checklist:
- Do you have the best business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage as a Vancouver medical device business. Our experts are available now to help you navigate the business insurance journey to protect your Vancouver business.
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