As a practical matter you can’t afford not to. The supplement industry has an unfortunate reputation of harboring “snake oil” companies in a “Wild West” environment. Media-fueled public perception is that the industry is unregulated by the FDA or FTC. This makes the industry an attractive arena for plaintiffs’ attorneys. The cost to defend lawsuits if you don’t have liability insurance is huge! It’s simply smart business to transfer the risk of attorney’s fees and settlement costs to an insurance company for a reasonable premium, given this unfavorable environment.
Currently, there is no true false advertising insurance that will protect your company from this kind of litigation. And don’t be fooled by the “Advertising Injury” coverage in your general liability policy. While it might sound as if you have some false advertising coverage there, you don’t. Read More.
No, although the implication is there in the term “product liability coverage.” Meaningful Product Recall insurance is provided by a separate policy. Read More.