EQuIP - Non-damage business interruption cover specifically designed for the pharma industry

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EQuIP - Non-damage business interruption cover specifically designed for the pharma industry

The threat of an enforcement action by a regulator is always on a pharma company’s risk radar. EQuIP is the new name for Munich Re’s customised business interruption solution that actively helps companies manage quality, manufacturing and supply chain risks.

In the past, physical damage has been seen as the key business interruption risk but regulatory based risks are often more critical.

Pharma manufacturing processes and supply chains are highly complex. Companies, both large and small, are often dependent on their outsourced manufacturing partners. These mutual dependencies mean that any suspension of manufacture at a contract manufacturer or a supplier will affect their clients and can result in substantial financial losses.

Any major manufacturing irregularity in good manufacturing compliance is likely to lead to regulatory actions such as a 483, Warning Letter, the withdrawal of Manufacturing Authorisation or an Import Ban. All will lead to major interruptions in production whilst remediation takes place to bring the facility back into compliance.

Until recently this exposure had no insurance risk transfer option.

Our solution: EQuIP

With EQuIP, pharma companies have an insurance solution that mitigates the financial impact of a major interruption, bridges the liquidity gap, and protects shareholders’ value.

EQuIP indemnifies you for financial losses arising from enforced or voluntary suspension of manufacture on a named sites basis due to major manufacturing irregularities in the production of components, ingredients or finished products.

EQuIP covers a wide range of events including complete or partial suspension due to:

  • The orders or actions of a Defined Regulatory Authority (DRA*)
  • Pre-emptive suspension to prevent enforced shut down by a DRA
  • The application of an Import Ban
  • The discovery of off-specification supplier’s materials


Please contact us to discuss your specific situation. We look forward to speaking with you about a solution that is tailored to you.

*DRA’s insured as standard under EQuIP are: The FDA, EMA (and inspection bodies of EU member countries), Swissmedic, Health Canada, the Norwegian Medicines Agency, the Japanese Ministry of Health, Labour and Welfare and Pharmaceuticals and Medical Device Agency, the State of Israel Ministry of Health, the Australian TGA, New Zealand’s Medsafe.

5 reasons you should talk to us:

1. You need an insurance solution that covers your most critical exposures.

EQuIP provides cover for suspension events at your own or a critical supplier’s site that cannot be insured under standard property and business interruption programmes. There no requirement to insure all sites. You optimise your purchase via the selection of key sites based on exposures and risk profile.

Munich Re provides flexible solutions that address the specific risks of the pharmaceutical industry: Talk to us.

2. You want an insurer that understands the complex nature of your supply chains and your key dependencies on third party suppliers.

Munich Re has invested considerable time and effort in researching and understanding both the complexities of pharma  supply chains and the historical incidents of regulatory related suspensions across the sector.  
We work in partnership with the supply chain management strategies of your company to develop a solution tailored to your specific risk profile.

Optimise your risk management strategy: Talk to us.

3. You need meaningful, reliable capacity and broad coverage

EQuIP offers scalable limits and broad cover:

  • Limits can be purchased from a low as $10,000,000 in the aggregate up to $150,000 000 in the aggregate
  • 24-month indemnity period including ongoing loss of market share once manufacture re-commences
  • Broad expenses coverage including specialist investigation and remediation costs, product destruction costs and recall costs
  • Indemnity can include loss of license or royalty fees where appropriate


Get meaningful cover for financial losses arising from non-damage supply chain interruptions:
 Talk to us.

4. You don’t have time to fill in lengthy proposal forms and questionnaires

Obtaining a quote for EQuIP is a simple and streamlined process:

  • Initial pricing indications can be obtained by supplying a list of addresses for those sites to be insured
  • Any further information needed to offer a firm quote is conducted via meetings or telephone interviews not via the completion of lengthy questionnaires.
  • A site visit may be required pre-or post inception in some circumstances


Develop a solution quickly and efficiently. Talk to us.

5. You are looking for a long-term, flexible business partner

Munich Re is committed developing solutions for the pharma industry and will continue to develop EQuIP and other tailored products to ensure they remain aligned to your risk landscape.

Be confident you have a long- term solution and a knowledgeable business partner Talk to us.

EQuIP offers comprehensive and clear non-damage business interruption cover and its flexible approach reflects the needs of a market characterised by complex supply chain dependences.


For further information including US (PDF, 155 KB) and European (PDF, 154 KB) Case Studies and a Key Features (PDF, 183 KB) Summary click on the links here.
These documents plus additional support material and contact details can also be found at the top right of this page.


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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.