On 28 December 2021, India’s Union Health Minister announced that the Central Drugs Standard Control Organization (CDSCO) has granted Emergency Use Authorization (EUA) to Serum Institute of India’s Covovax, Biological E’s Corbevax and the antiviral drug Molnupiravir.
This brings the total count of COVID-19 vaccines that have been given EUA by India’s drug regulator to eight.
However, with any pharmaceutical product, there is always a risk of it having unexpected side effects or causing accidental harm to the public.
So, how do vaccine makers hedge against this risk?
Well, pharma companies usually have a Product Liability Insurance policy in place. Such a policy helps them pay monetary compensation to any consumer who suffers bodily injury, illness, property damage, or accidental death due to the company’s product(s).
Product Liability Insurance can also cover product recalls where the manufacturer is forced to request customers to return already sold items in order to avoid further harm.
With the help of this Insurance, companies can also cover any legal or defence costs in the event of lawsuits levelled against them for their defective products.
However, no protection is provided in the event of deliberate and willful non-compliance of laws or regulations.
Vaccines go through numerous clinical trials before being approved. But, what happens if something goes wrong during these trials? Find out here
Learn more: Product Liability Insurance