Home > Property & Casualty > ‘Tis the season to beware of pharmaceutical thieves

‘Tis the season to beware of pharmaceutical thieves

Over the past few weeks we have received various warnings from cargo and transit insurance companies along with FreightWatch International regarding potential thefts of drugs and pharmaceutical shipments. Intelligence was released last week by the N.E. Transportation Security Council that five members of a Florida-based cargo theft crew were arriving in New Jersey on Wednesday with the intent of committing a cargo theft somewhere in the Northeast (NJ, PA, MD, NY, IL, CT, OH). Assuming they already scouted the target location in the past and will commit the theft over the next several days or the Thanksgiving holiday weekend. Back on November 10th, a full truckload of pharmaceuticals was stolen from a rest area in Kentucky when it was left alone alongside the exit ramp because the parking spaces were full. The truck was reportedly left unattended for just 15 minutes and the theft occurred approximately 225 miles from the shipment’s point of origin. The full value for this loss has not yet been established yet but is reported to be worth several million dollars.

Some recommendations from the experts to avoid such theft losses include:

  • Having employees keep alert for suspicious activity
  • Remind employees of proper protocol when responding to burglar alarms
  • Remain vigilant and report any suspicious activity to local Police Department
  • If you have closed facilities over the extended holiday weekend, you may want to hire additional security personnel
  • Do not ignore “false alarms” at premises
  • Keep stringent policies, such as not leaving high value loads unattended while in-transit
  • Parking in only pre-approved locations

About the Author

Amy Sinclair is a Senior Vice President and co-leader of the Life Sciences Practice in WGA’s Property and Casualty Group. She negotiates, implements and manages comprehensive insurance programs for a variety of clients, ranging from venture-backed start-up organizations up to publicly traded companies.

617.646.0229 | Asinclair@wgains.com | Connect with Amy on LinkedIn

  1. Mindy Evanter
    November 22, 2010 at 12:09 pm

    For more information regarding the potential liability for drug manufacturers when the product hits the black market – see our earlier report at http://www.wgains.com/assets/lifesciences/August2010/email.html

  2. June 21, 2011 at 10:42 am

    There has been a report of a pharmaceutical cargo theft in Louisville, Kentucky. A full truckload of diabetes testing equipment was stolen on June 18th from a carrier facility lot. The load consisted of 37 pallets of the testing materials and is valued at approximately $4 million. Cargo theft gangs operating in Louisville have been the topic of multiple bulletins issues throughout the supply chain industry and clearly are continuing the actively target high value goods in the area. Shippers are strongly encouraged to review their facility and in-transit security programs for operations in the Louisville area, and to consider this area a high risk zone such as Miami, Memphis or DFW.

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