EQuIP – Earnings Quality Insurance Protection
An innovative non-damage business interruption cover protects biopharma and medical devices industries from losses arising from regulatory non-compliance business interruption.
EQuIP bridges a risk gap not covered in standard property insurance covers for the pharma industry
Earnings Quality Insurance Protection (EQuIP) is a cutting edge solution for biopharma and medical-device companies. It mitigates the financial impact of a major interruption, bridges the liquidity gap, and protects shareholders’ value. The comprehensive and clear non-damage business interruption cover takes a flexible approach – a must when addressing the needs of a market shaped by complex supply chain dependences.
3 questions to ask yourself in the face of non-damage business interruption challenges:
As my supply chain becomes more outsourced and complex, do I have business interruption risks that I can’t control and that are not covered under my traditional insurance?
Does my dependency on the regulatory compliance of third-party suppliers put my company’s results at greater risk when it comes to delivering on forecasts to shareholders
Is there a risk transfer solution that can help me bridge my company’s liquidity gap when dealing with own manufacturing disruption due to GMP non-compliance?
Life Science Industry
5 reasons you should talk to us
You want an insurer that understands the complex nature of your supply chains and your key dependencies on third party suppliers
Get meaningful cover for financial losses arising from non-damage supply chain interruptions.
EQuIP offers scalable limits and broad cover:
- Limits can be purchased from a low as US$10m in the aggregate up to US$150m 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
Obtaining a quote for EQuIP is a simple and streamlined process.
- To obtain a first pricing indications, supply a list of addresses for sites to be insured
- For a firm quote, share more in-depth details in meetings or telephone interviews, no lengthy questionnaires necessary.
- In some cases, we may need to visit a site pre-or post inception.
What EQuIP can do for you
- Offers bespoke solutions for Global Pharma, Specialty Biotech, Medical Devices and CDMO companies
- Grants coverage for a wide range of regulatory non-compliance based events
- Provides limits from US$10m to US$150m
- Covers your key owned and/or supplier sites against losses arising from production shutdown due to order of a Defined Regulatory Authority (DRA1)
- Allows voluntary suspension of manufacture when a facility must shut down in order to remediate identified violations
- Reimburses investigation expenses and the costs of remediating manufacturing problems at your own facility after a closure
- Delivers protection in case of prohibition of import or sale of products in key markets
- Demonstrates a comprehensive Risk Management approach to clients and investors
A real-life event – and how EQuIP could have helped
A company was forced to initiate a nation-wide voluntary recall of one of its injectable drugs as a result of potential contamination with glass particles. Fill and finish of the product had been outsourced to a third party CDMO, whose facility received an FDA warning letter citing GMP failures in producing drugs to required specification and preventing microbial contamination
- 3 million vials being recalled
- Significant revenue impact as all sales of injectable products were suspended whilst root cause was identified and remediated
- Another pharmaceutical company was also forced to recall products manufactured at the same CDMO facility
How EQuIP could have helped
EQuIP would have bridged the gap in lost earnings incurred by this pharmaceutical company. It would also have covered the recall costs and other extra expenses.
Your benefits in a nutshell
About Munich Re Facultative & Corporate
Learn more about what we can do for you and discover the full portfolio.