Marsh and Munich Re have announced the availability of a new non-damage business interruption insurance (NDBI) solution that 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).
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 are being followed. When these inspections result in a suspension of manufacturing, whether voluntary or enforced, the resulting costs are not typically covered by traditional business interruption insurance policies since they are not the result of physical damage to the insured’s property.
To fill this void, Marsh and Munich Re developed NDBI Pharma IQ. The policy offers life sciences companies that suspend their manufacturing and distribution due to a current good manufacturing processes 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.
NDBI Pharma IQ also offers 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.