Lab Insurance

Laboratories of all kinds have tons of unique risks and exposures that need to be considered ahead of time. Having coverage tailored to your business's needs is critical to preventing a huge possible financial loss. Business insurance catered to a lab must be set up before any projects get underway.

Luckily, an independent insurance agent can help you find the right kind of lab insurance for your business. They'll get you equipped with all the coverage necessary. First, however, here's a closer look at laboratory insurance.

What Kind of Insurance Do Laboratories Need?

Labs need a variety of insurance policies to protect against the risks to property and individuals they face every day. A lab insurance policy bundles the basics of business insurance and specific coverages needed by your niche into one convenient package. Here are a few of the most common types of coverage needed by labs:

• Commercial property insurance: This coverage protects labs from the costs associated with physical damage to equipment and property at their business premises due to listed perils like fire, smoke, hail, wind, vandalism, theft, etc.
• Business interruption insurance: This coverage helps pay for continued expenses, income, and employee wages if your lab cannot operate for a period of time after a covered loss.
• Commercial general liability insurance: This coverage protects your lab against lawsuit costs if you or an employee damages another person’s property or causes them bodily injury. 
• Business owners policy insurance: This is a convenient insurance package that includes all of the coverages listed above.

An independent insurance agent will learn about you and your specific lab to assemble the right kind of lab insurance policy for your business.

Special Coverage Considerations for Mobile Labs

Mobile labs perform testing off-site and in the field. This presents a unique set of risks beyond those present for a permanent lab facility. For example, the mobile test lab van or truck and the equipment inside of it are irreplaceable, yet it's susceptible to break-ins, accidents, vandalism, theft, weather events, and more. 

You need insurance coverage to protect your mobile test lab vehicle and equipment. Look into the following types of coverage if you run or own a mobile lab:

• Commercial auto insurance: This coverage protects your mobile lab's vehicle against costs associated with accidents, theft, vandalism, and weather events. 
• Inland marine insurance: This coverage protects tools, equipment, and supplies that you bring off-site while they're in transit or stored in the mobile lab.

Your independent insurance agent can also address coverage concerns if your lab is mobile and include the necessary protections in a lab insurance policy.

Why Laboratories Need Professional Liability Insurance

Any mistake your lab makes could cause substantial financial or physical injury to a client or other third party. If your lab lacks the proper coverage, a lawsuit could potentially ruin your business's reputation and livelihood, and even your personal assets could be at risk. Professional liability insurance is a critical coverage that protects labs against lawsuit costs related to claims of giving improper advice or services to the public or causing another professional error or omission that causes harm. 

Malpractice insurance for medical laboratories is just a special type of professional liability coverage. Medical labs and professionals need professional liability protection due to the extremely litigious nature of the field. 

Dental laboratory insurance also must include malpractice insurance. Customers, clients, and their families could sue your lab if a professional error or omission is made that results in injury, illness, or financial harm, and in the medical realm, lawsuit costs can be astronomical without the right coverage.

Professional liability insurance covers these incidents and more:

• Actual or alleged errors
• Omissions 
• Professional negligence 
• Breach of duty 
• Misleading statements 
• Claims resulting from the performance of professional services

Coverage is excluded for instances of intentional wrongdoing or illegal acts. Make sure to talk to your independent insurance agent about getting your lab equipped with the right kind of professional liability insurance as soon as possible.

Other Types of Coverage for Labs to Consider

Laboratories might still need other types of business insurance for their policies to be complete. Additional types of coverage commonly chosen by labs include:

• Workers’ compensation insurance: This coverage is often mandatory and pays for lost income and medical expenses for employees who sustain work-related injuries or illnesses.
• Employment practices liability insurance: This coverage protects your lab from employee lawsuits related to claims of discrimination, wrongful termination, etc.
• Business auto insurance: This covers your company’s vehicles that get damaged, stolen, or destroyed and covers lawsuit costs for accidents and other incidents.
• Commercial umbrella insurance: This extends your lab's existing liability coverage limit in increments of $1 million to give you much more protection against lawsuits.
• Pollution liability insurance: This protects your lab against third-party claims of property damage or bodily injury due to pollutants from your business.

You may also have additional risks if you handle certain chemicals or other toxic agents. You may need special protection from fires, chemical explosions, and other accidents involving caustic or toxic chemicals or waste. An independent insurance agent can help you determine how to properly insure your business if you work with these dangerous substances.

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How to Find the Best Business Insurance for Laboratories

If you need business insurance for a laboratory, contact an independent insurance agent. These agents work with multiple highly-rated insurance companies specializing in businesses like yours. Never settle for a one-size-fits-all approach. Instead, work closely with your independent insurance agent to assess your risks and find the best-tailored insurance solutions for your needs and budget.