By Greg Doherty, Bolton & Company | May 1, 2015 The dietary supplement industry has an opportunity to obtain broader product contamination coverage than ever before. Five years ago, I wrote an article about product recall insurance for the dietary supplement industry, analyzing what it did and did not cover, and under what circumstances. I […]
Dangerous warranty questions are becoming more common and could pose a hazard for you at the worst possible time. Five years ago I wrote an article about the existence—or lack thereof—of false advertising insurance. Unfortunately, there is still a widespread perception that a commercial general liability policy provides defense and settlement costs for false advertising […]
Deals in the supplement space are heating up. That’s why it’s important to remember to pay attention to details like Extended Reporting Provision (“ERP”) or “tail” coverage options available in insurance policies that can protect the business going forward in the event of claims. Liability insurance for supplement raw materials suppliers, contract manufacturers and retailers […]
I am frequently asked if there is any correlation between GMP certifications and lower product liability insurance premiums. Common sense says there probably should be. Then reality sets in and establishing the correlation becomes murky. Let’s briefly review the current “certification” arena. FDA does not certify compliance to its own regulations. Rather, its role is […]
On Dec. 22, 2007, a bill signed by President Bush the year preceeding became law. It established a required reporting procedure of serious adverse events (SAE) for dietary supplements sold and used in the United States. Together with further requirements, it mandated the company whose brand appears on the product maintain records associated with each […]
What is claims-made liability insurance? Under claims-made liability insurance, coverage is triggered by the date you first became aware of the possibility of a claim and/or a claim is actually made against you, and when you notify the insurer of your knowledge of the claim or potential claim. The insurer’s policy that is in force […]
Insurance costs for commercial general liability, including product liability, have finally leveled off for companies in the dietary supplement business. All sectors of the industry are currently seeing their renewal rates decrease—in some cases dramatically. While this is good news for the bottom line, it does not mean that due diligence should be discarded when […]
Lawsuits alleging false advertising against dietary supplement companies seem to be on the rise. Two typical types of lawsuits in this area are the popular “public interest” class action lawsuit (using, for example, California’s Proposition 65 as a foundation) or lawsuits where federal or state governments attempt to enforce existing regulations. The majority of people […]
Broker Selection Key to Managing Product Liability Insurance Insurance costs for commercial general liability, including product liability, have skyrocketed in the past few years for all sectors of the dietary supplement industry. In addition to premium cost, companies must consider two other important aspects of product liability insurance. The first is the limits of insurance […]
In the past, commercial general liability insurance (aka product liability) did not cover expenses and damages associated with a product recall; however, this has changed a little. In fact, companies are now seeing essentially two kinds of product recall insurance policies—liken them to the Kia and the Mercedes. One is much more expensive than the […]
