How Cosmetic Product Liability Insurance Can Protect Your Business

What Is Cosmetic Product Liability Insurance?

Cosmetic product insurance aims to protect businesses that design, sell, distribute, or manufacture (yourself or contracted through third parties) skin care, hair care, face care & beauty products from risk. 

For example, product liability insurance can cover damages, such as medical expenses, from a skin cream that causes an allergic reaction. 

How Cosmetic Product Liability Coverage Can Protect Your Business

As a manufacturer, packager, importer, or distributor of cosmetic goods, you know that working with beauty, haircare and skincare products can be tricky.  

The beauty and cosmetics industry is confronted with potentially devastating risks daily, from strict regulations around your products to supply chain issues to quality control and consumer safety. Cosmetic liability insurance packages are designed specifically to address those business risks and at ALIGNED Insurance they are custom built to meet your organization’s operations, preferences and budget.  

Who Needs Cosmetics Beauty Product Liability Insurance?

Commercial General Liability insurance that includes product liability insurance is best suited to retail stores, manufacturers, importers, online retailers, wholesalers, and distributors of beauty products–regardless of whether you’re operating a large or small business, as either comes with liability for bodily injury or property damage to third parties.     

Ultimately, if your business is involved with beauty products, beauty product insurance is a wise choice, no matter where it sits in the supply chain. 

What Are The Benefits Of Having Beauty Liability Insurance?

The benefit of having cosmetic liability insurance is that it protects your business from all kinds of risks, including third-party bodily injury or property damage, product mislabeling, and failure to provide adequate safety warnings or instructions.    

For example, if a customer uses a moisturizer or facial serum you formulated and it causes a bad skin reaction, you could be held financially responsible for their injuries, pain, suffering, etc. With cosmetic product liability business insurance, your business could be covered in the event of a costly and unexpected lawsuit resulting from bodily injury or property damage to your customers. 

Some Of The Cosmetic Products We Cover

  • Makeup, Eye Shadow, Eye Liner, Foundation & Nail Polish
  • Skin Cream, Eye Cream, Lotion, Age Cream & Moisturizer
  • Acne Treatments
  • Lipstick & Lip Balm
  • Shaving Creams
  • Shampoos and Conditioners, Gel, Mousse & Hair Spray
  • Deodorants & Antiperspirants
  • Baby Skincare Products
  • Beauty Accessories
  • Candles
  • Spa Products
  • Essential Oils
  • Handcrafted Soap & Homemade Beauty Products

How Cosmetics Insurance Can Cover Your Business

Below are some of the coverages typically included in a cosmetic company insurance package. The coverages and the package itself are cost-effective and customizable to meet your specific business needs. 

Commercial General Liability Insurance

A general liability insurance policy can provide you with comprehensive coverage for legal costs, including defence costs, settlements, and damages for lawsuits alleging personal injury (on your property), property damage, libel/slander, and false advertising.

Cosmetic Product Liability Insurance

Product liability coverage protects your organization from lawsuits related to bodily injuries, illnesses, allergic reactions, or property damage alleged to have been caused by your cosmetic goods.    

Product Recall Insurance

If you need to recall beauty or skincare products, this policy can provide coverage for recall costs, including replacement costs, disposal fees, testing costs, and brand rehabilitation expenses. 

Pollution Liability Insurance

This insurance policy can provide your cosmetic manufacturing company with coverage for cleanup costs, fines, and legal fees related to pollution and waste disposal liability.

Commercial Property Insurance

Commercial property insurance provides protection for structures and contents, including buildings, equipment, machinery, supplies, assets, etc., from damage or destruction caused by perils such as fires, floods, windstorms, sewage backups, and more. You may also want to include additional coverage:

  • Business Interruption coverage that will reimburse you for income lost due to an insured peril; 
  • Extra Expense insurance plan that covers the costs of setting up a temporary business location during repairs.

Boiler & Machinery Insurance / Equipment Breakdown Insurance

Equipment breakdown insurance provides you with coverage for losses due to a breakdown in manufacturing, heating/cooling, and other equipment caused by specific perils such as electrical arcing, power surges, and more.

Cargo Insurance Coverage 

For cosmetics shippers, this policy provides end-to-end cargo coverage, protecting your shipments from loss or damage, border delays, and other shipping risks.

Commercial Auto Insurance / Commercial Vehicle Insurance

Whether you need fleet protection or single-vehicle coverage, this policy responds when a vehicle is used for business purposes.

Get ALIGNED With Commercial Insurance Experts

We only deal in commercial insurance and work with the top insurance providers in Canada to get you the right insurance options for your cosmetic company at competitive rates. 

Contact an advocate or get a free quote on beauty product insurance coverage in minutes. Let’s ensure your cosmetic product business is equipped with the right insurance policies for financial protection against product liability claims.    

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