Regardless of FDA requirements, you should have dietary supplement insurance to cover potential lawsuits or claims filed by clients taking your goods. Even if you are not actually “making” the product, if your brand name is on the label, U.S. courts may still consider you a manufacturer.
Who Needs Dietary Supplement Insurance?
Whether you are selling or making dietary supplements, you should consider acquiring dietary supplement insurance coverage. Dietary supplement insurance is designed to protect you and your business from any lawsuits that may arise from either the sale or distribution of dietary supplements. While some states may not require sellers and distributors to have dietary supplement insurance, it can be a risky move. Below is a list of who should consider getting covered.
Anyone manufacturing or selling:
- Nutritional & Dietary Supplements
- Herbal Products (compounded & non-compounded)
- Energy Supplements
- Protein Supplements
- Bodybuilding Supplements
- Weight Loss Products
- Topical Creams
- Body Cleansers
Industries Who Should Acquire A Policy
Below are some top industries that should acquire a dietary supplement insurance policy:
- Vitamin & supplement manufacturers
- Contract manufacturers
- Online stores selling nutraceuticals
- Raw material suppliers
- Vitamin wholesalers
- Mineral distributors
- Traditional storefronts
- Dietary supplement manufacturers
What Does Dietary Supplement Insurance Cover?
- Commercial General Liability- Commercial general liability or CGL, is considered the most basic coverage it protects businesses from property damage, bodily injury, legal defense, medical expenses, and personal and advertising liability.
- Product Liability Insurance- covers costs a company may face from claims made for side effects, allergic reactions, injuries, and company negligence.
How Much Does Dietary Supplement Insurance Cost?
Southern States Insurance has access to many nutraceutical insurance providers, meaning we can offer multiple coverage and pricing options so you can choose what’s best for your company. Costs can vary for dietary supplement insurance, but minimum premiums usually start at $3,000 for most states.
Why Do I Need Nutraceutical & Dietary Supplement Insurance?
Starting a nutraceutical business can be complicated, and insurance is an aspect that your business cannot afford to ignore. Selling or distributing supplements can bring great benefits to the consumer, but also have the potential to cause harm. Supplements contain various ingredients that do not always benefit the consumer. Any dietary business should not risk the legal claims that may arise.
Common risks vitamin and dietary supplement businesses face:
- Your supplier or manufacturer is shut down or goes out of business
- You are sued because of an allergic reaction to an ingredient or an injury or death from taking the product
- You are sued for injury from the actual packaging that your product was shipped inside
- You’re helping your clients care for themselves, so let us help take care of you and your business
Which Ingredients Does The Policy Cover?
Many nutraceutical insurance policies are filled with exclusions for various ingredients. But we have access to insurance carriers who can waive these exclusions for you.
We can provide coverage for the following ingredients:
- Bitter Orange
- Magnolia Bark
It is important that you provide your insurance company with product labels and ingredients lists from the beginning, especially if you need private label dietary supplement insurance. Providing all of this information upfront minimizes the potential insurance coverage surprises in the future. Anytime you need to add a product line, you should inform your agent so you can make sure that all the products are covered.
Speak With An Experienced Specialty Insurance Agent
For more information about dietary supplement insurance or to receive a quote for a policy, reach out to the experienced specialty insurance agents at Southern States Insurance by calling (888) 971-5657 or by requesting a quote online.