How much does biotech startup insurance cost?

A pre-IND biotech startup at $1M-$5M annual burn rate typically pays $15,000-$45,000 annually for a full specialty insurance program. The components are D&O ($1M-$3M primary), employment practices liability, fiduciary if a 401(k) is in place, IP and tech E&O if applicable, and cyber for any clinical or research data flows.

Phase 1-2 clinical-stage biotech at $5M-$20M burn rate runs $40,000-$120,000 annually. The driver is the clinical trial liability tower for active studies, plus the D&O expansion that follows the funding round progression.

IPO-readiness biotech (12-24 months from anticipated offering) typically runs $120,000-$280,000 annually for primary D&O alone, before transactional D&O placement at the offering itself ($300K-$800K one-time depending on offering size).

The largest cost drivers across stages: number of active clinical trials, total patient enrollment, IP infringement exposure (platform-IP licensing arrangements drive cost higher), prior loss history, and securities-class-action exposure for post-IPO operators.