Can innovation be secured- an approach to develop a contigency policy !!!!!

Without innovation sustainability in a competitive market looks impossible for any kind of firm and to sustain it is very important to be innovative for customers. Investing in complex, long term research, development and innovation (RDI) projects can be risky for them. We can’t  make them free from risk but are able to lower these risks, facilitating insurance coverage on investment that will boost competitiveness, growth and job creation. 

Innovation (R&D) insurance is essential to ensure that the funding is protected, as in most of the cases "standard business interruption policies" (consequential loss coverage) will not respond in these circumstances. For those companies who are involved in research and development activities, they will not be receiving any profit or revenue therefore in the event of an insured loss, there will be no cover for the money they have expanded on research and development or for income they have received (and spent) as funding. Loss of market share could be disastrous if the product does not reach its timelines therefore protection of property is key. In order for companies to benefit from protection under their insurance they should consider having a seperate section for Innovation/ R&D under their Business interruption (consequential loss policy) which cover for:

Additional increase cost of working.

income

expenditure e.t.c.

Most of the time innovation and innovative ideas lags just because of fear of losing money by investing in an event, which is unclear in terms of its outcome. These huge investments can be supported by insurance companies by providing a contigency policy for them. Although it will be very risky business for insurance companies but a proper underwriting may reduce risks associated and may open a new and growing sector of business.

 (an idea about consideration of supporting investment:  will support investments that, would believe and  find is technically, economically, financially and environmentally sounds.)

Different areas where can implement easily: or who will be benefited

v  FMCG firms.

v  Research Institutes.

v  University.

v  Private and public organization.

v  Biomedical labs.