Munich Re logo
Not if, but how
Munich Re Facultative & Corporate (F&C)

Explore Munich Re Group

Get to know our Group companies, branches and subsidiaries worldwide.

EQuIP – Earnings Quality Insurance Protection
© Shana Novak / Getty images

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.

    alt txt



    EQuIP bridges a risk gap not covered in standard property insurance covers for the pharma industry

    Losses through manufacturer suspensions due to problems in quality exceed 12 billion US-Dollars since 2001.

    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:
    1. 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?  

    2. 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

    3. 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

      Regulatory compliance in unprecedented times – how to adapt and stay on track

    5 reasons you should talk to us

    EQuIP provides cover for suspension events due to GMP violations at your own or a critical supplier’s site that cannot be insured under standard property and business interruption programmes. Insuring all sites is not a requirement – optimise your purchase by selecting key sites based on exposures and risk profile.
    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 build on the supply chain management strategies of your company to develop a solution tailored to your specific risk profile.

    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. 
    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.

    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
    1 DRA – regulatory authorities that are covered as standard are those operating in USA, Canada, EU, Switzerland, Norway, Israel, Japan, Australia, New Zealand

    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

    The outcome:
    • 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

    We understand the complexities for pharma supply chains
    EQuIP offers scalable limits and broad cover
    Contact us
    Joachim Haun
    Joachim Haun
    Head of New Risk Solutions
    Petra Mates
    Petra Mates
    Senior Underwriter

    About Munich Re Facultative & Corporate

    This solutions is provided by Munich Re Facultative & Corporate. Munich Re F&C bundles the worldwide facultative & corporate business in one unit. This gives us even more power to serve our clients and brokers to sustainably expand and accelerate the insurance industry - while allowing us to explore new opportunities beyond our traditional business.
    Learn more about what we can do for you and discover the full portfolio.