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TheraCover

Psychedelics Insurance
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Expertly Designed Coverage that Evolves in Lockstep with Advancements in Psychedelic-Assisted Therapy 

 

Insurance is already a complex, constantly evolving industry, but add in the new, rapidly changing developments in psychedelics for clinical use, and working with an experienced professional to help you navigate this space becomes essential. AHT’s professionals have immersed themselves into the psychedelics risk landscape since this ground-breaking therapy became a fierce topic in healthcare.

The race is on as clinical trials continue to progress and companies begin to seek FDA approval for clinical use of psychedelics in the treatment of PTSD, traumatic brain injury, mental disorders, and the effects of domestic abuse. This means the race is also on to put the proper coverage in place to protect the companies and people involved in getting this breakthrough therapy to market, which is why we developed TheraCover – Psychedelics Insurance.

After decades of demonization and criminalization, psychedelic drugs are on the cusp of entering mainstream psychiatry, with profound implications for a field that in recent decades has seen few pharmacological advancements for the treatment of mental disorders and addiction.

Andrew Jacobs

The New York Times

PROTECTING YOUR MOST CHALLENGING EXPOSURES

While life science companies continue to undergo clinical trials for the use of drugs, such as methylenedioxy-methamphetamine (MDMA) and psilocybin, for psychedelic-assisted therapy (PAT), insurance professionals are preparing for managing the risks and identifying the proper coverage as these new treatments hit the healthcare system.

The exposures facing the companies and people involved in psychedelics research are some of the toughest to navigate and cover from an insurance perspective. Our professionals design customized programs to manage these highly challenging risks and protect those overseeing the clinical trials. Contact us to talk about insurance for psychedelics.

Examples of the most essential coverages include:

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General Liability

Protect your company from third-party claims of bodily injury resulting in the use of psychedelic drugs for treatment of mental disorders and complex trauma.

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Professional Liability

Protect the service providers, clinicians, therapists, etc., administering psychedelic-assisted therapy if a negligence claim is made by a patient.

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Umbrella

Put an umbrella policy in place to cover gaps and the undoubtedly unique risks posed by this potentially breakthrough treatment.

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Global Programs

Put coverage in place for international exposures facing clients administering clinical trials around the world.

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Product Liability

Defend your company against drug-related product liability claims – defectively manufactured pharmaceutical drugs, those with dangerous side effects or that are improperly marketed.

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Cyber

Retain proper cyber insurance to protect your company. With major advancements in healthcare and pharmaceuticals, companies become easy and highly vulnerable targets for cyberattacks.

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Directors & Officers Liability

Protect the professionals who are overseeing the clinical trials in the event they are sued by participants or family members.

PROTECTING THE FRONT LINES

Hospitals & Healthcare Facilities

Psychedelics Associations

Companies Administering Clinical Trials

Manufacturers

Clinicians & Therapists

ARTICLES & RESOURCES

atai Impact, the philanthropic program of atai Life Sciences, is donating $500,000 to MAPS to support pioneering work in psychedelic medicine

This donation is an important demonstration of the synergy and collaboration across the leading non-profit and commercial organizations to advance psychedelic medicine and tackle the escalating mental health crisis affecting over one billion people worldwide.

MDMA-assisted therapy for severe PTSD: a randomized, double-blind, placebo-controlled phase 3 study

The results from the first of two MAPS-sponsored Phase 3 clinical trials for MDMA-assisted therapy for PTSD were statistically significant. The full results have been published. Phase 3 is the final stage before seeking FDA approval for a new prescription treatment.

If successful, this treatment could transform the lives of millions of people who live with the impacts of complex trauma.

Multidisciplinary Association for Psychedelic Studies (MAPS)

MAPS, a leader in psychedelic research, since 1986 is on a mission to create safe and legal opportunities for the uses of psychedelics in society.

“Psychedelics, when used wisely, have the potential to heal us, help inspire us, and perhaps even save us.”

—Rick Doblin, Ph.D., MAPS Founder and Executive Director

World Boxing Council, Wesana Health Partnering To Examine Psychedelics As Potential Treatment For Traumatic Brain Injury

Since retiring from the National Hockey League in 2015 at age 30, Daniel Carcillo has dedicated his life to helping athletes and other people like himself who have suffered from traumatic brain injury. Two years ago, he implemented a lifestyle change that included an improved diet, more sleep and the use of a psychedelic drug called psilocybin, which he says has made him feel better than ever. Wesana Health Aims to Solve Traumatic Brain Injury

Magic Mushrooms May Be the Biggest Advance in Treating Depression Since Prozac

Larger clinical trials underway in the United States and Europe are aimed at winning regulatory approval. Two studies that have enrolled more than 300 patients in 10 countries were given “breakthrough therapy” status in 2018 and 2019 by the U.S. Food and Drug Administration (FDA), which will now expedite its review of the results. If the trials succeed, new protocols that combine psilocybin with psychotherapy in a clinical setting for the treatment of depression could be established quickly.

Legal Status of Psychedelic Drugs and Research Involving Possible Medical Uses

Under federal law, several psychedelic drugs, such as psilocybin and MDMA, are Schedule I controlled substances, subject to various criminal penalties. Researchers must obtain approval from the federal Drug Enforcement Administration (DEA) if they are seeking to conduct studies of Schedule I controlled substances not currently approved for medical use. In 2018, the DEA announced that it had taken certain steps to streamline the approval process (see the “Medical Research and Treatment” section below for examples of such research).

A psychedelic drug may help treat PTSD. But questions remain on how best to use—and regulate—it

As MDMA and other tightly controlled psychedelic compounds inch closer to regulatory approval, careful supervision from therapists may help overcome their reputation as illicit substances and fears of indiscriminate use.

The Psychedelic Revolution Is Coming. Psychiatry May Never Be the Same.

Psilocybin and MDMA are poised to be the hottest new therapeutics since Prozac. Universities want in, and so does Wall Street. Some worry a push to loosen access could bring unintended consequences.

PROTECTING THE FRONT LINES – CLINICIANS & THERAPISTS

As clinicians and therapists, you took an oath to help care for and protect those with medical and mental health needs. As risk management professionals, we may not take an oath, but we do make a promise to every client to protect them and their most valuable assets.

With the rise in psychedelics clinical trials for the treatment of some mental health disorders comes a microscope over those administering the treatments. You’re on the front lines to help but that help could have negative consequences in the form of lawsuits against you as an individual.

Let’s talk about how to properly cover your risks and put your mind at ease as you help others.

PROTECTING THE INVESTORS

With projections for the U.S. market in psychedelics to grow 16.3% and reach $6.85 billion by 2027, the commercial and medical potential is an attractive opportunity in which to invest. But with that potential comes monetary and reputational risks private equity firms need to be prepared for and understand the nuances involved with investing in the psychedelics market.

Let’s talk about how to properly protect yourself from these unique risks.

MANAGING THE MANUFACTURER’S RISK

As a manufacturer, the risk doesn’t end when your product goes out the door. In the case of psychedelics medicine, you’re still at risk when the product you manufactured is administered to patients in clinical trials.

Let’s talk about how to properly cover your company’s risks during and after the manufacturing of psychedelics.

MEET OUR PSYCHEDELICS INSURANCE LEADER

Leslie Nylund, CPCU

Leslie Nylund, CPCU

Managing Director, Strategic Growth Initiatives

Email: Leslie.Nylund@ahtins.com
Phone: 646.866.7457
Mobile: 917.399.8028