07.26.12
Whole Foods Market Inc. (WFM), Austin, TX, has recently begun enforcing higher liability insurance requirements, and has categorized dietary supplement companies in its highest of four risk categories, increasing the liability insurance requirements to $6 million per occurrence and $7 million aggregate. “For companies selling or wanting to sell supplements in WFM, and which currently don’t meet this requirement, this enforcement action will cost companies a lot of money in higher premiums, and in some cases, may be the tipping point between selling and not selling to WFM,” explained Greg Doherty, dietary supplement practice leader at Poms & Associates Insurance Brokers, Inc., Los Angeles, CA. As a result, Poms & Associates has developed an insurance facility that will take companies up to the required $6 million per occurrence/$7 million aggregate.
