D&O Liability for Clinical-Stage Biotech
What this clause says
Vendor shall maintain Directors and Officers Liability Insurance with a limit of not less than $5,000,000 per claim, including coverage for securities claims, regulatory investigations, and employment practices wrongful acts where applicable to Vendor's clinical development activities.
What this means in plain English
D&O insurance covers personal liability of directors and officers for decisions made in their corporate capacity. For clinical-stage biotechs, the dominant exposures are securities class actions (for public companies), regulatory investigations (FDA, SEC), and breach of fiduciary duty claims related to clinical program decisions.
What it means for a CDMO program
Clinical-stage biotechs typically carry $5M-$25M D&O depending on stage and public/private status. Side A coverage (protecting individual directors when the company cannot indemnify) is essential. Securities class action exposure scales with public-market visibility; private biotechs need D&O primarily for regulatory investigation defense and investor disputes.
Carrier notes
Biotech D&O is a specialty line — generalist carriers often decline. Markets writing biotech D&O underwrite the clinical pipeline, FDA history, and securities-litigation risk profile.
How this evaluates
The Decoder applies these rules in order; the first match wins.
- do › limit is at least $5M → Compliant: D&O meets $5M.
- do › limit is not set → Gap: No D&O indicated.
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Pre-loaded with this clause selected.
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