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Product Liability in the Dietary Supplement Industry
Any product that you make puts you into a position of responsibility and liability. Having product liability insurance is essential, as a lawsuit has the potential to destroy your company. Whether you manufacture dietary supplements, herbal products, energy drinks, and energy pills or supplement bars, any product issues can easily escalate into a lawsuit that can cost you everything.
This is why it is essential that you check with your insurance agent to be sure that you have the right product liability insurance for your company and your needs. Costs for a product liability class can easily exceed millions of dollars, so be sure that you have enough coverage.
The Dietary Supplement Industry is Fickle
You can go from a zero to a hero overnight with the latest dietary supplement. One day your product could be flying off of the shelves and the next day a news report could be released with alleged issues with your product. Even the suspicion of problems can have a big effect on your sales. Some consumers just have that saying “where there is smoke, there is fire” ingrained into them. If there are issues that are investigated and are found to be true, then your dietary supplement may be almost impossible to sell. This could have a domino effect and cause you to lose money on this end, as well as lose money if customers begin filing lawsuits, and you have to pay for lawyers, court costs, and/or settlement amounts.
Protecting Your Business Now and Into the Future
No matter what area of the dietary supplement/nutraceutical industry your company is part of, when you offer a product you are liable for any issues that may occur due to someone’s use of it. Even herbal products have inherent risk in taking them, simply because everyone is different. To protect your company now and in the future from lawsuits from product liability, you want to purchase product liability insurance before you sell to the public.
Purchasing Customized Product Liability Coverage
Product liability insurance is a policy that a company takes out to protect them against any liability claims that are made. This insurance can cover lawyer costs, as well as court costs and any settlement costs that you are liable to pay. These costs can quickly add up to millions of dollars, which can cause a company to be forced into closure, but this doesn't have to be the case. That is why it is essential to purchase product liability insurance if you offer any type of product such as:
- Dietary supplements
- Herbal products
- Energy drinks
- Energy or diet supplement bars
- Or are a cosmetic distributor
With Great Responsibility Comes Great Risk
Offering a product to the public brings with it great responsibility, as well as risk. That is why it is important to protect your company and your own personal financial future. Product liability insurance can be a lifesaver as far as financial costs go if a claim of liability is made against you due to a customer issue, such as death or injury. By finding the customized product liability coverage for your own particular needs, you can make sure that you protect both your company and yourself from financial devastation.
WHINS Insurance Agency provides product liability throughout the state of California and represents over 30 of the most well-known insurance companies in the US. As community stalwarts for many years, WHINS is a member of the Trusted Choice Independent Insurance Agents of America, the National Society of Agents for Consumer Education and the Better Business Bureau.
We will make sure you are receiving the Nutrapak coverage you need at WHINS Insurance Agency - 818-233-0825.
"My company recently needed a very specific insurance policy in order for us to remain in good standing with our valued client base. We were lucky enough to put in our first call of many to WHINS. WHINS assisted me and my company in what we needed and just as importantly when we needed it....All at a great price." - Wenty M., Morris & Young LLC