Nanotech Faces Insurance Hurdles

Newcomers to a growing nanotechnology manufacturing industry face an unexpected stumbling block when they try to acquire traditional business insurance, owners say. Obtaining basic coverage for facilities, equipment, and employees took more than six months of continual effort working with a broker and a consultant and cost tens of thousands of dollars more than anticipated, says Craig Bandes, president and CEO of Pixelligent Technologies, a zirconia nanocrystal manufacturing facility in Maryland. Bandes and others shared their insurance woes in a webinar hosted by the federal government’s National Nanotechnology Coordination Office that focused on roadblocks to success in nanotechnology commercialization. “Nano is new, and insurance companies just weren’t doing it,” Bandes says. The challenge, he adds, is convincing insurers to take a closer look at facilities that produce nanomaterials before denying coverage on the basis of health concerns. EPA reviews the manufacture of nanoscale materials under the Toxic Substances Control Act, but risks associated with these products remain unclear because toxicity data are insufficient.