Research & Development Expenditure / Funding

There are clearly many issues that can have an impact on current & future funding plans.

Most if not all companies will spend a percentage of their income on research & development (R&D). For a start up company with little or no income they must either use capital, grants or other means of external funding to develop and introduce their product into the market place.

Therefore the loss of a companies R&D will in most cases have a disastrous financial impact.

It is common for an investor to stipulate that keyman cover must be purchased to protect their initial & subsequent investments. The main reason possibly due to the key drivers i.e. innovator(s) & technical staff within the business being fundamental to the success of the business during this critical time for the investor.

However R & D cover is also important to protect not only the company but the investors and stakeholders within a business.

Solutions

Within Inventive Step we have ensured that R & D cover can be purchased for both property and business interruption either individually or combined.

In addition to purchasing protection using our Inventive Step facilities we would also recommend Diligence Risk Management should be considered to review how robust the contingency planning that has been put in place.

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