As the producer, importer, retailer, distributor or wholesaler of vitamins, supplements or nutraceuticals, you are providing a unique and sought-after product to the marketplace. This subsector of health and wellness continues to enjoy steady growth, with Statistics Canada reporting that nearly half (45.6%) of Canadians use at least one supplement.
In an industry that has enjoyed steady growth and is poised to continue an upward trajectory, what are the risks?
The Risks Associated With Vitamins, Supplements, and Nutraceuticals
In Canada, vitamins, supplements and nutraceuticals are treated as non-prescription drugs and regulated as natural health products. They must be approved by Health Canada before they can be sold in this country. Despite that, these products have faced lawsuits in the past for a variety of reasons, including false claims, allergic reactions and ingredients included but not listed to name a few. This is a somewhat volatile industry to operate in, and you must protect your business from potential risks as a lawsuit can cripple a small business, and if your company is named in a suit involving harm caused by these products it could prove devastating.
What Insurance Do You Need to Produce and Sell Vitamins, Supplements and Nutraceuticals?
There are several insurance coverages that you likely require as part of your business. Consider the following:
Adequate General Liability Insurance is essential for your business. This type of coverage protects you in the case of third-party bodily injury or property damage claims against your business. This insurance covers damages and legal costs associated with any lawsuit your business might be named in. Product Liability Insurance is typically included in commercial general liability policies and will protect you against claims associated with your products.
Product Recall Insurance can cover some of the numerous costs associated with the products you manufacture or distribute being recalled for defects, contamination or other quality control issues. The expense of recalling products, lost revenue, PR expenses and the cost of replacement as well as other costs are covered under this insurance.
Depending on the nature of your Vitamins, Supplement and Nutraceuticals business, you may also want to consider additional coverages, including the following:
–Commercial Auto Insurance if you are involved in transporting or delivering your products to customers.
–Cyber Liability Insurance protects your online assets, including an online store, website or customer information, from breaches or malicious attacks.
–Commercial Property Insurance protects your physical location(s), inventory, raw materials, equipment, etc. from covered perils including extreme weather fire, water damage, theft etc.
–Umbrella Liability Insurance comes into play where other liability coverages end and can protect you in the event of a major lawsuit like allegations of death or disability as a result of product consumption or usage.
Find the Right Vitamins, Supplements and Nutraceuticals Insurance from ALIGNED
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