You’ve spent years developing a medical device or software that could reshape your industry. Your product is ready, clients are eager and the launch is underway. Then, a liability claim arises or a data breach compromises sensitive information. You turn to your insurer for coverage, only to have your claim denied or disputed.
For life sciences and other technology companies, this scenario is not uncommon. The complexities of clinical trials, the high stakes of intellectual property disputes and the increasing risks of cybercrime mean that your insurance coverage must be as dynamic as the challenges you face.
At Crowley Law LLC, we help our clients protect their rights, safeguard their assets and regain control in the face of insurance challenges. With a strategic approach and a deep understanding of the unique risks your industry faces, we stand ready to turn complex disputes into manageable solutions.
When an insurance dispute interrupts your business, it forces you to confront why securing the right insurance coverage is essential in the first place. For life sciences and other technology companies, the stakes are high and the risks are deeply embedded in the work you do. Below are some of the most pressing risks that require robust insurance coverage:
A medical device that malfunctions unexpectedly or a life sciences product with adverse effects can quickly lead to lawsuits. For example, if a newly launched medical device is found to cause unintended harm to patients, your company could face significant legal claims that threaten both your finances and reputation.
Your IP is your competitive edge, but disputes can jeopardize it. If a competitor claims your product infringes on its patents or copyrights, defending your position can be costly and time-consuming without proper insurance coverage.
Cybercrime is an ever-present danger, particularly for companies handling sensitive data or IP. A ransomware attack targeting your research data or client information could lead to financial losses, operational disruptions and reputational damage. Cyber liability insurance plays a vital role in offsetting these risks.
Clinical trials often involve unforeseen complications. A participant could experience serious side effects, leading to liability claims against your company. Without insurance tailored to cover these scenarios, the financial burden could halt your research indefinitely.
Delays, failures or disputes with vendors can disrupt operations and harm long-standing business relationships. Whether it’s a breach of contract with a supplier or a class-action lawsuit over a defective product, insurance coverage helps protect your company’s stability.
By addressing these risks directly, you protect your business and keep it focused on what matters most: innovation and growth. However, insurance disputes can erode that protection, making it critical to have a trusted legal partner ready to step in when it matters most.
Now that you understand why the right insurance coverage is essential for life sciences and other technology companies, let’s consider an equally important question: How do disputes arise in the first place? You secured a policy. You paid the premiums. So why, when you need that coverage the most, does your insurer push back?
It’s a frustrating reality for many businesses in the life sciences and tech sector. Insurers, despite offering coverage, often interpret policies in ways that minimize payouts. Sometimes, it’s an outright denial. Other times, it’s a delay, an unexpected exclusion or a dispute over liability. These challenges can disrupt operations, stall innovation and leave your company exposed to financial risks you thought were covered.
These are some of the most common situations that lead to insurance disputes:
Your insurer refuses to cover losses, arguing that the policy does not apply to your specific situation. A cyberattack compromises sensitive research data, but the insurer claims your cyber insurance only covers network breaches, not intellectual property theft.
The claim is accepted, but payment is slow, jeopardizing cash flow and critical operations. If a medical device recall or product liability lawsuit is pending, any delay in financial support can have serious consequences.
The coverage you thought you had is not what is actually provided. Maybe you assumed your liability coverage included errors and omissions, only to find that professional mistakes are excluded.
Insurers may argue that your claim falls outside the agreed terms. You file for business interruption coverage after a supply chain failure, but the insurer claims that delays caused by third-party contracts aren’t covered.
Some insurers act in bad faith, unfairly denying claims, underpaying settlements or failing to conduct thorough investigations. If your insurer is unresponsive or dismissive despite clear evidence supporting your claim, you could be facing a bad-faith dispute.
But while insurers may have deep resources, they do not have the final say. You do. And that is where legal counsel becomes invaluable.
We have spent decades helping life sciences and other technology companies navigate complex insurance disputes. We have seen firsthand how insurers attempt to minimize payouts, delay settlements or deny valid claims outright. Based on our deep experience in insurance law, these are the most effective avenues for resolving disputes:
Insurance policies are often dense and filled with provisions that can be used against you. We analyze the fine print to confirm that your policy is interpreted correctly and enforced as intended.
The strength of your case often comes down to the evidence you present. We work closely with life sciences clients, tech executives and compliance teams to collect documentation that supports your claim, whether it includes internal reports, communications with insurers or data demonstrating financial losses.
Not every dispute needs to end in litigation. In many cases, mediation or arbitration provides a faster, less costly resolution. We have successfully represented biotechnology companies and medical device manufacturers in ADR proceedings, securing favorable outcomes without the delays of a courtroom battle.
If an insurer refuses to negotiate in good faith, we take decisive action. Our team represents companies in class actions, mass torts and copyright infringement claims, holding insurers accountable for wrongful denials and securing rightful compensation.
Prevention is just as important as resolution. We help businesses address vulnerabilities in their insurance policies, ensuring that coverage aligns with their industry’s unique risks. By structuring contracts, reviewing policies and identifying gaps in professional services coverage, we help mitigate future disputes before they arise.
With Crowley Law LLC by your side, you gain a legal partner committed to protecting your business, intellectual property and financial future. Whether through negotiation, arbitration or litigation, we hold your insurance provider to the commitments it made so your company can keep innovating, growing and delivering solutions that matter.
This article is for informational purposes only and does not constitute legal advice. You should consult qualified legal counsel regarding your specific situation.
If your insurer denies your claim, review the denial letter carefully, gather supporting documentation and consult with an attorney to determine your legal options. In many cases, denials can be challenged through negotiation, arbitration or litigation.
The timeline varies depending on the complexity of the case, the insurer’s willingness to negotiate and whether the dispute is resolved through mediation, arbitration or litigation. Some disputes settle in weeks, while others may take months or longer if litigation is necessary.
Insurers may claim that losses are not covered under the policy, delay payouts through excessive documentation requests or misinterpret policy language to minimize their liability. Some engage in bad faith practices, unfairly denying valid claims.
Yes, many insurance disputes are resolved through ADR methods such as mediation or arbitration, which can be faster and less costly than litigation. However, if an insurer refuses to negotiate in good faith, legal action may be necessary.
We represent life sciences and other technology companies in insurance disputes, ensuring insurers uphold their obligations. Our team handles policy reviews, evidence gathering, negotiation, arbitration and litigation to help clients recover the coverage they are entitled to.
