Update on Sponsor Insurance For Clinical Trials

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Update on Sponsor Insurance For Clinical Trials

• June 26, 2008

Ty Howe, Life Sciences Practice Leader Boston
office
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Health InsurersWill they pay for subject
injuries?

• Specific facts of the situation will have a large
  bearing on whether health insurance will cover
  these medical costs. Will the current costs
  limit larger, long term medical costs?
• Self insured plans are more likely to pay than
  insured plans
• Some local plans will be more likely to pay than
  national plans (Aetna, United Health), due to
  local community standards
• Sponsors have no ability to predict what
  percentage of medical expenses might be paid in a
  clinical trial

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Clinical Trial Liability Insurance

• A Liability policy, that may include Medical
  Expense coverage
• Medical Expense insurance No fault insurance
  for medical expenses incurred by a clinical trial
  participant
• A sublimit within a clinical trial liability
  policy
• Limits range from 0 to 10,000
• New 250,000 excess option
• Insurers include CNA, Berkley, Chubb, Medmarc,
  ACE
• Profitable business insurers will compete for
  accounts
• International market is completely different from
  US market

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Insurers mentality about claims

• Yes, it is a liability policy, but
• As always, facts determine the insurers response
• If the plaintiffs argument will present a
  sympathetic set of facts to a jury, insurers will
  want to settle without proof of liability or even
  a lawsuit