Munich Re and Marsh launch innovative NDBI cover for US life science companies
The new non-damage business interruption insurance NDBI Pharma IQ combines risk transfer and consulting services to assist life sciences companies in managing the impact of regulatory actions imposed by the US Food and Drug Administration (FDA).
Munich. The FDA and its international counterparts are more closely scrutinizing life sciences companies today through planned and unplanned inspections to ensure current Good Manufacturing Processes (cGMP) are being followed. When these inspections result in a suspension of manufacturing, whether voluntary or enforced, the resulting costs are borne by the company as traditional business interruption insurance policies generally respond only in the event of physical damage to an insured’s property.
To fill this void, Munich Re and Marsh developed NDBI Pharma IQ. This innovative cover offers life sciences companies that suspend their manufacturing and distribution due to a cGMP violation, up to $10 million in aggregate non-damage business interruption and extra expense coverage for up to 10 manufacturing locations, including those owned by third parties.
Unique to NDBI Pharma IQ are complimentary risk assessment and quantification services supported by Marsh Risk Consulting’s forensic accounting, business continuity, and property risk experts. Insureds are provided 60 hours of consulting services to aid in the assessment and management of their supply chain exposures to potential FDA regulatory actions.
NDBI Pharma IQ is only available through Marsh and Munich Re. Additional insurance capacity and consulting services are available as needed.
This press release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forward-looking statements given here and the actual development, in particular the results, financial situation and performance of our Company. The Company assumes no liability to update these forward-looking statements or to conform them to future events or developments.