Access the latest issue of Nutraceuticals World and browse our extensive archives to catch up on past articles and features.
Read the full digital edition of Nutraceuticals World, complete with interactive content and enhanced features for an engaging experience.
Join our community! Subscribe to Nutraceuticals World to receive the latest industry news, insights, and updates directly to your mailbox.
Learn about Nutraceuticals World’s mission, vision, and commitment to providing valuable information and resources for the nutraceutical industry.
Discover advertising opportunities with Nutraceuticals World to connect with a targeted audience in the nutraceutical sector.
Review our editorial guidelines for contributions and submissions to ensure your content aligns with our standards.
Read about our commitment to protecting your privacy and how we handle your personal information.
Familiarize yourself with the terms and conditions governing the use of nutraceuticalsworld.com.
Dive into feature articles that provide in-depth analysis and discussions on critical topics within the nutraceutical space.
Access unique content and exclusive interviews with industry leaders and innovators, offering insights into the future of nutraceuticals.
Discover the top companies in the nutraceutical industry, highlighting their innovations and contributions to the market.
Gain valuable perspectives from suppliers on market trends, challenges, and opportunities within the nutraceutical sector.
Stay informed with regular market updates that track the latest trends and developments impacting the nutraceutical industry.
Explore mergers and acquisitions, financial performance, and investment trends shaping the nutraceutical landscape.
Learn about the latest innovations in manufacturing and formulation processes that enhance product quality and efficacy.
Discover new products and ingredients making waves in the nutraceutical market, along with their benefits and applications.
Stay updated on regulatory developments and compliance issues affecting the nutraceutical industry.
Access the latest research findings and studies that inform trends and innovations in nutraceuticals.
Learn about nutraceutical products that support beauty and wellness, focusing on ingredients that address age-related concerns.
Discover nutraceutical solutions aimed at supporting bone, joint, and muscle health for optimal mobility.
Stay informed on products and ingredients promoting cardiovascular health and wellbeing.
Explore nutraceutical options designed to support the health and development of children.
Learn about nutraceutical products that enhance cognitive function and mental clarity.
Discover nutraceutical solutions that boost energy levels and support overall vitality.
Stay updated on ingredients and products promoting eye health and vision wellness.
Explore nutraceutical offerings tailored specifically for men’s health and wellness.
Learn about nutraceuticals that promote relaxation, stress relief, and improved sleep quality.
Stay informed about antioxidant-rich ingredients that combat oxidative stress and promote overall health.
Explore the benefits of green ingredients, including superfoods and their roles in health and wellness.
Learn about the uses and benefits of herbs, botanicals, and mushrooms in the nutraceutical sector.
Discover the health benefits of omega-3s and other nutritional oils for overall wellbeing.
Stay updated on the latest research and products related to probiotics and prebiotics.
Explore the role of protein and fiber in nutrition and their importance in dietary supplements.
Learn about alternative sweeteners and their applications in the nutraceutical market.
Discover essential vitamins and minerals that support health and wellbeing in various products.
Access our buyer’s guide to find trusted suppliers and service providers in the nutraceutical market.
Identify the top companies leading the nutraceutical industry with innovative products and solutions.
Explore the capabilities of leading nutraceutical companies and their areas of expertise.
Familiarize yourself with key terms and definitions related to the nutraceutical industry.
Watch informative videos featuring industry experts discussing trends, innovations, and insights in nutraceuticals.
Enjoy short, engaging videos that provide quick insights and updates on key nutraceutical topics.
Tune in to discussions with industry leaders sharing their perspectives on trends and challenges in the nutraceutical sector.
Access comprehensive eBooks covering various topics in nutraceuticals, from formulation to marketing.
Read in-depth whitepapers that examine key issues, trends, and research findings in the nutraceutical industry.
Explore informational brochures that provide insights into specific products, companies, and market trends.
Access sponsored articles and insights from leading companies in the nutraceutical sector.
Stay informed with the latest news releases and announcements from companies in the nutraceutical industry.
Browse job opportunities in the nutraceutical sector, connecting you with potential employers.
Discover major industry events, trade shows, and conferences focused on nutraceuticals and dietary supplements.
Participate in informative webinars led by industry experts, covering various topics in nutraceuticals.
Discover exclusive live streams and updates from the hottest events and shows.
What are you searching for?
Costs for product liability insurance are relatively low. Here’s some advice to reduce your costs and protect your company.
March 1, 2017
By: Greg Doherty
Things have changed in the 15 years that our insurance practice has been providing product liability and other insurance products to the dietary supplement industry. My column this month will give historical perspective to some of the relevant issues facing buyers of commercial insurance for their supplement company, and also outline current trends and provide tips for smart insurance buying. Premium Costs for Product Liability Premium costs for this insurance have never been lower over the last 15 years. Companies starting up these days have no idea how expensive this insurance was in the “bad old days.” But for these startups, which our practice embraces (and many brokers will turn away), the 2017 cost is often shocking. This is due in large part to “minimum premiums” imposed by all of the carriers active in this space, but unfortunately for these small companies, it is the price of entry. For larger companies not subject to a minimum premium, costs have generally flattened out over the past 18 months. That said, there is still competition for larger, attractive accounts. However, I still talk to people who have not seen quotes from alternative carriers for many years—not a good sign. It probably means someone has become complacent (the buyer, their broker or both). Tip: If you are a company with $5 million or more in annual revenue and you have not seen alternative quotes in several years, there is a good chance that your cost can be reduced. Simply conduct a fair competition among the several viable carriers that can likely quote your account. Ingredient Exclusions The ingredients commonly excluded by carriers have not changed much in the past few years, except for those involved in sports nutrition products. Since the DMAA flap began in 2012, that and several other ingredients are on many (but not all) of the lists. These include BMPEA (Acacia rigidula), picamilon, AMP citrate and dendrobium. DMAA is making its way back into the market, promoted by those who don’t think or understand that it’s illegal. Bitter orange is excluded by most carriers, but can be taken off and thus covered, as the fear that it was the “ephedra alkaloid replacement” has faded in underwriters eyes as time has passed. Tip: Your product liability policy will have ingredient exclusions. It is incumbent on you to review that exclusion list each year before you write a check for your policy renewal, because the exclusion lists are changing (growing) all the time in response to various forces, which include FDA enforcement actions, bad publicity (factual or otherwise), class action lawsuits, or a Consumer Reports article that drags a dozen common dietary supplement ingredients through the proverbial mud. Finished Goods Inventory: What if My Fulfillment House Burns Down Tonight? A few years ago I came to realize that many of my customers, and people in the industry in general, went to bed at night thinking: “I carefully chose my fulfillment provider and if something happens to my inventory there, like a fire or theft, then they must have insurance for that to protect my loss.” And the unfortunate truth is, in general they are not giving you that protection. Sometimes they will give you evidence of their “warehouse legal liability” insurance. But you would be remiss in accepting that as coverage that protects your inventory, because in reality it only protects them if they are deemed legally liable for a loss to your property. (For example, they store gasoline in open drums at the facility, and it ignites and destroys your property. Because that behavior screams negligence, their policy would probably respond.) Tip: Review your contract with the fulfillment house. Chances are that deep in the contract, you will find verbiage that says they aren’t covering your property against physical loss, under any circumstances. That means you have to insure it yourself. If the contract is silent on this, draw the same conclusion—it’s on you to insure it against fire, theft, etc. You don’t want to find this out after the smoke from the fire has cleared. The Myth of Product Recall & Prop 65 Insurance Some of the carriers offering product liability insurance to the dietary supplement industry have published Internet brochures and other promotional material saying they provide Prop 65 coverage as part of their policy coverage. What some of them don’t tell you is much more telling. First of all, in the fine print, the coverage is limited to a low amount, such as $25,000 or maybe $50,000. The average Prop 65 settlement is much higher than that. Further, coverage may be limited to “civil penalties” from Prop 65 litigation, which statistics show is usually around 15-20% of the average settlement, at most. So what are you getting really? Almost nothing. Don’t make your buying decision based on the ostensible Prop 65 “coverage” they are offering. Similarly, since Prop 65 litigation is essentially an allegation of false advertising, don’t be fooled into believing that you have any coverage for false advertising claims, whether they arise from a regulatory action (FTC) or a consumer class action—the latter seems to be the litigation de jour for plaintiffs’ attorneys attacking the industry today. Tip: Understand that you have no coverage for this. Protect yourself as best you can using other means, like a top-notch regulatory attorney or a consultant equally qualified. Regarding product recall insurance, see the previous comments on Prop 65 “coverage.” The coverage is limited to a pitifully low amount, and is often further limited to your costs of the recall, not your customers’ costs, which in reality may greatly exceed your costs. Tip: Proper, comprehensive product recall coverage is available from a small handful of specialty carriers, and the cost has fallen in recent years. If you want to pursue proper coverage, it’s one of these carriers that you want on your team.
Enter your account email.
A verification code was sent to your email, Enter the 6-digit code sent to your mail.
Didn't get the code? Check your spam folder or resend code
Set a new password for signing in and accessing your data.
Your Password has been Updated !