Sales of dietary supplements now reach over $11 billion in the U.S. alone. This spurs manufacturers to think about the effect of a product recall or lawsuit. Sadler Products Liability Insurance specialized its insurance program to meet the needs of the nutraceuticals and dietary supplements industry.
This new insurance program provides a solution uniquely tailored to this rapidly growing industry. The program safeguards manufacturers, distributors, importers and sellers of these products in the event of lawsuits or product recalls.
“The supplement industry made great strides in recent years, but liability and recalls still exist. They can hit a supplement manufacturer and their agents extremely hard,” said Paul Owens, a risk management expert with Sadler.
The source of many problems for the supplement industry is poor manufacturing and inspection practices. This led to the FDA report that more than half of the hundreds of dietary supplement firms they inspected violated manufacturing rules.
“At least a quarter of the supplements on the market contain ingredients that aren’t listed on the product label. The FDA or an attorney can step in and cause big problems for the manufacturer or distributor,” Owens said.
Sadler Products Liability Insurance offers specially-designed coverage to the dietary supplement industry. Insurance includes up to $5 million in liability limits on a primary basis and a variety of features offered specifically for dietary supplement firms. Additionally, Sadler offers Product Recall insurance. Many manufacturers, distributors, and small-business owners don’t realize that’s not always included in Product Liability insurance.
“The good news is the number of violations and problems is down. This results in the cost of liability insurance dropping. Now companies can get the coverage they need at a cost-effective price,” Owens said.
All of this works to help dietary supplements grow in a climate where millions of people are looking for more natural ways to influence their health.
Visit Sadler’s dietary supplement page for more information on coverage. And learn more about the resources and information available or apply online by calling 800-622-7370. Ask for Paul Owens or the Product Liability department.
3014 Devine St.
P.O. Box 5866
Columbia, SC 29250
1-800-622-7370 Toll Free