Nov 29, 2023

Securing Success in Biotech: How D&O Insurance Shields Your Leadership

Biotech companies have a complex regulatory landscape to navigate. Regulatory authorities require businesses to follow specific processes and to meet various requirements for product development and medical studies. Companies within the biotech industry can face litigation that may deplete the company and leadership’s assets. D&O insurance protects the interest of leaders in the instance of a lawsuit waged against directors and officers.

Role of Leaders in Biotech Companies

Leaders within the biotech sector have various responsibilities. They must ensure safety for themselves and the public in an industry where companies develop products using live materials to treat illnesses and diseases.

Directors in a company are also fiduciaries. They have to make informed decisions about corporate developments and maintain the corporation’s best interests. If your company faces allegations of breaching taxation or labor law, the directors could lose their personal assets without D&O coverage.

Common lawsuits that could affect directors and officers include:

  • Liability claims due to side effects from medical research or clinical trials
  • Claims for breach of cybersecurity that results in the loss of personal data or trade secrets
  • Manufacturing defects that result in illness or injury

It is up to the directors and officers to manage risk, but D&O insurance can help transfer some of that risk and provide peace of mind.

Directors and Officers (D&O) Insurance Explained

D&O liability is a type of professional liability coverage that protects your board members and executives in the case of lawsuits for misrepresentation, mismanagement, or a breach of duty or regulation.

When third parties file lawsuits against companies, they may make the executives the focus of their cases. When this happens, the company has to spend money to hire lawyers to work on behalf of the directors and officers. D&O coverage covers litigation costs and legal compensation up to the policy limits.

As you consider D&O policies, keep your budget in mind, as well as your specific risks. Oakwood will help you review endorsements and exclusions that will benefit your company.

Importance of D&O Insurance in the Biotech Sector

One of the most significant reasons to obtain D&O liability coverage is to protect your company’s leadership financially. Without D&O coverage, your leadership may have to pay legal fees out of pocket or risk their assets during the lawsuit.

Additionally, having insurance coverage can help your company attract talent and investors. While investors and leadership candidates expect some risk when working in the biotech sector, D&O policies show that you care about risk mitigation and are willing to safeguard your company and its leadership.

Work With Oakwood to Obtain D&O Insurance for Your Biotech Company

Leaders of companies within the biotech industry must protect their assets against potential lawsuits. At Oakwood, our staff understands the biotech industry and will help your company curate custom D&O insurance policies that consider your specific budget and risk.

Investing in D&O policies is a form of risk mitigation that can protect your company and help attract new talent. Contact us to find out more about our insurance solutions.


Oakwood D&O Insurance provides industry leading insurance services, solutions, and counsel to our clients.

Our professionals are valued for their ability to provide outstanding customer service, with a commitment to the relentless pursuit of value-added solutions, results and comprehensive coverage.

Oakwood D&O at Work

One of our clients had been purchasing D&O insurance from the same carrier for several years. We looked at their tower and realized that not only was their primary carrier not A+ rated, they were also paying too much for the primary layer. We were able to move the coverage to A+ rated paper and save the client six figures.