Insurance Product

Important Coverage Provisions

  • Coverage Form - Claims Made vs. Claims Made & Reported vs. Occurrence
  • Deductible Type - Per Claim vs Per Occurrence
  • Deductible Aggregate
  • Retroactive Dates
  • Batch Clause
  • Coverage Territory
  • Excluded Ingredients
  • Primary & Non-Contributory Wording
  • Waiver of Subrogation
  • Broad Form Named Insured
  • Recall Coverage (Type and Sub-limited Amounts)

Product Liability

Manufacturers, distributors, suppliers, retailers, and others who make products available to the public are held responsible for the injuries those products cause.  Product liability insurance protects businesses in the event that the products they have manufactured or sold injure someone or cause property damage.

Product liability insurance is typically purchased in increments of $1,000,000.  The policy may also include a deductible or retention.  This represents the "out of pocket" cost that the policy holder will incur for a claim.

  • Accidental Contamination
  • Raw/Unfinished Stock Coverage
  • Malicious Product Tampering Coverage
  • Product Extortion Coverage
  • Recall Consultant and Adviser Costs
  • Third Party Liability Coverage
  • Government Recall Coverage
  • Rehabilitation Expense Coverage
  • Adverse Publicity Coverage
  • First Party Loss of Gross Profits Coverage
  • Policy Limit Structure (Aggregates/Inside vs Outside Limits)

product recall

Product recall insurance is a unique policy that reimburses policy holders for financials losses they confront because of evidence indicating a product has caused or would cause bodily injury or property damage.  Coverage would be "triggered" for a nutraceutical company when knowledge is gained that an accidentally or maliciously contaminated product would cause bodily injury were it consumed by the public.  Even if the product results in no liability, the policy holder is reimbursed for certain financial costs related to the incident.


  • Policy Structure - Limit, Sub-Limits, Aggregates
  • Notification Costs - Cost Limit or Record Limit
  • Credit Monitoring - Cost Limit or Record Limit
  • Data Recovery & Business Interruption Coverage
  • Deductible Structure
  • Regulatory Fines & Penalties Coverage
  • PCI Fines & Penalties Coverage
  • Crisis Management / Public Relation Coverage
  • Media Liability Coverage
  • Cyber Extortion Coverage
  • Hacker & Malicious Code Damage Coverage
  • Forensic Investigation Coverage
  • 3rd Party Liability Coverage

Cyber Liability

Cyber liability insurance protects a policy holder against 1st and 3rd party damages sustained as a result of an actual or alleged breach of private information held by the policy holder.  The breached information may belong to clients, employees, suppliers, or vendors.

First party damages may include cyber extortion costs, data restoration costs, network restoration costs, loss of profits and extra expense (business interruption), forensic investigation costs, public relation costs, notification costs, credit monitoring costs.

Third party damages may include legal defense, settlements for damages and judgments related to the breach, liability to banks for re-issuing credit cards, and regulatory fines and penalties.

  • Definition of Insured (Director/Officer - Employee)
  • Defense Costs - Inside/Outside Policy Limits
  • Definition of Claim / Loss
  • Hammer Clause Provision
  • Anti-Trust Coverage
  • Additional Side A Coverage
  • Notice of Claim Provisions
  • Prior Acts Exclusions 
  • Fraud/Criminal Activity Determination Provision
  • Insured vs. Insured Exclusion and Carvebacks
  • Acquisition Threshold
  • Punitive Damages Coverage
  • Extended Reporting Period Provisions
  • Allocation Provisions
  • Related Party Exclusions
  • Non-Compensatory Damages Exclusion
  • Contractual Liability Exclusion

directors & officers liability

Directors & Officers insurance protects company executives from claims which may arise from the decisions and actions taken within the scope of their regular duties.  Given that the personal assets of these company executives are at risk, directors & officers insurance should be a standard component of every company's insurance portfolio.

While directors & officers insurance was originally intended to protect company executives, most policies today cover managers, other non-executive directors, employees, and the company itself.

Claims can be brought by company stakeholders, customers, customer groups, competitors, business partners, and government enforcement/regulatory groups.

  • Claims Made vs. Claims Made and Reported
  • Prior Acts Exclusion
  • Duty to Defend
  • Defense Inside or Outside Limits of Insurance
  • Definition of an Employee / Insured
  • Definition of a Claim / Loss
  • Wage and Hour Coverage
  • Claims Noticing Provisions
  • Punitive Damages Coverage
  • Hammer Clause
  • 3rd Party Coverage
  • Extended Reporting Period Provisions
  • Minimum Earned Premium
  • Additional Defense Coverage
  • Fraud/Intentional Acts Exclusion

employment practices liability

Employment practices liability insurance protects a company, its executives, and its employees, from claims alleging a violation of legal rights by an employee.  The most common employment practices liability insurance claims involve the following: sexual harassment, discrimination, wrongful termination, failure to hire or promote, retaliation, breach of employment contract, negligent evaluation, wrongful discipline, deprivation of career opportunity, wrongful infliction of emotional distress, and wage and hour disputes.

Employment practices liability insurance will pay for defense costs and settlement costs associated with a claim.

All employers, large or small, are at risk for these types of claims.


  • Domestic Policy Coverage Territory
  • Domestic Policy Claim Reporting Requirements
  • Foreign Country Insurance Requirements
  • Admitted vs. Non-Admitted Foreign Policy
  • Foreign Local Agent Relationships
  • Foreign Policy Coverage Provisions
  • International Property Coverage
  • International Liability Coverage
  • International Auto Coverage
  • International Trip / Travel Coverage
  • Kidnap & Ransom
  • Foreign Voluntary Workers Compensation Coverage

international insurance

Nutritional and Dietary Supplement companies often have international insurance exposures.  These exposures are a result of overseas manufacturing, international travel, global product distribution, and international subsidiary creation.  Insuring these exposures adequately can be a daunting task.  Navigating through international insurance requirements, policy restrictions, and local country insurance agents requires expertise and experience.

Areas of international exposure include: internationally owned property, international local operations, international travel, international auto ownership or rental, and international products distribution.


  • Policy Limits and Structure
  • Deductibles / Retentions
  • Personal and Advertising Injury Coverage
  • Medical Expenses Coverage
  • Fire Legal Liability Coverage
  • Definition of Bodily Injury
  • Supplementary Coverages
  • Hired & Non-Owned Auto Coverage
  • Coverage Territory
  • Primary & Non-Contributory Wording
  • Waiver of Subrogation
  • Additional Insured Coverage Provisions
  • Limiting Coverage Restrictions and Exclusions

general liability insurance

General Liability Insurance protects nutraceutical companies from 3rd party bodily injury or property damage claims unrelated to their products.  The majority of nutritional supplement, dietary supplement, and vitamin companies are protected from product claims through a separately purchased product liability policy (top of page).

The most common claims reported involve the premise or operations of the policyholder..  An example would be a 3rd party entering your premise and slipping on an unmarked wet floor and injuring themselves.  General Liability Insurance would pay for the medical bills associated with the bodily injury they sustained.  Other aspects of General Liability Insurance include Personal Injury Liability, Medical Expenses, and Fire Legal Liability.


  • Policy Form - Special vs. Broad vs. Basic
  • Adequate Property Valuations
  • Correctly Identified and Reported Property
  • Business Personal Property vs. Computers & Media
  • Property Valuation Type (RC, ACV, Agreed Value)
  • Deductible Levels
  • Co-Insurance Provisions and Penalties
  • Supplementary Coverages
  • Business Income Limit and Coverage
  • Business Property Off Premise / In Transit
  • Employee Dishonesty
  • Equipment Breakdown

commercial property insurance

A Commercial Property Insurance policy protects the assets and income of a company from covered causes of loss.  A typical commercial property insurance policy will insure buildings and structures, contents and inventory (business personal property), business income and extra expense (business interruption), and equipment breakdown.

Most policies are written on a "Special Form" policy.  This type of policy defines what is covered and agrees to insure it against all perils except those otherwise excluded or sub-limited.  The most common exclusions are ordinance and law, earthquake, flood, governmental action, nuclear hazard, utility services, war and military action, and fungus.


  • Accurate Employee Classification
  • Coverage for LLC Members / Executives/ Owners
  • Experience Modification Factor
  • Unit Statistical Date
  • Claim Frequency vs. Claim Severity
  • Open Claims / Claim Reserves
  • Scheduled Credits
  • Employers Liability Limits
  • Employee Distribution (States)
  • Monopolistic States (N. Dakota, Ohio, Washington, Wyoming)
  • Stop-Gap Liability
  • Insurer / Broker Loss Control Resources

workers compensation

Workers Compensation Insurance provides benefits to employees for injuries and illnesses arising out of and in the course and scope of their employment.  These benefits include medical expense payment, lost wages, and indemnification for permanent  bodily injuries or death.  

Workers Compensation Insurance is legally required and can be purchased through private insurance companies in every state except North Dakota, Ohio, Washington, and Wyoming.

Workers Compensation Insurance also includes Employers Liability coverage.  Employers Liability covers liability arising out of employees' work related injuries that do not fall under the workers compensation statute (Example: Loss of Consortium claims or Third Party Action Over claims)


  • Liability Limits
  • Uninsured / Underinsured Motorist Coverage
  • Physical Damage Deductibles
  • Physical Damage Coverage (Comp./Coll. vs. Specified)
  • Hired & Non-Owned Auto Coverage
  • Lease or Loan Gap Coverage
  • Towing
  • Rental Car Reimbursement
  • Supplementary Coverages

commercial auto insurance

Nutraceutical companies that own vehicles need to purchase Commercial Auto Insurance.  Commercial Auto Insurance insures the vehicles for physical damage claims and protects the company from liability losses that may arise out of the use of a corporately owned vehicle.  Commercial Auto Insurance policies should also include "Hired and Non-Owned Auto" coverage.  This coverage insures losses arising out of the use of a rental car (rented by the company) or a personally owned auto by an employee for business purposes.


  • Limits of Liability (per shipment exposure)
  • Covered Methods of Transportation
  • Valuation
  • Geographical Limits
  • Deductibles
  • Audit and Reporting Provisions
  • No Claims Discounts

ocean marine (cargo) insurance

Many nutritional supplement and dietary supplement companies ship products to or from other countries.  This may involve shipments from other countries arriving at a domestic warehouse or distribution center or shipments to other countries for sale or distribution.  In either case, Ocean Marine Insurance covers the transportation of goods and/or merchandise by vessels crossing both foreign and domestic waters including any inland or aviation transit associated with the shipment.


  • Who is an Insured
  • Limits of Liability
  • Master Policy Aggregate
  • Deductible / Retention
  • HIPAA Coverage
  • Retroactive Dates


  • Employee Theft
  • ERISA Fidelity
  • Employee Theft of Client Property
  • Forgery or Alteration
  • Computer Fraud
  • Fund Transfer Fraud

Fiduciary liability & fidelity Insurance

Fiduciary Liability - In today's ever-shifting legal environment, employers are increasingly being held accountable for the benefit options they offer employees.  Under ERISA, fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors and omission or breach of their fiduciary duty.  The company, fiduciaries of employee benefit plans, and benefit plan administrative employees are insured under this policy.

Fidelity Insurance - Also called a fidelity "bond" or "crime" insurance, this type of insurance insures against theft of company funds.  The theft may be committed by an employee or by a 3rd party through a variety of means.  Theft via fraudulent fund transfers, fraudulent credit card usage, and computer systems is becoming more and more common.


  • Access to Credit Risk Database
  • Debt Collection Services
  • Active Monitoring on Insured Accounts
  • Credit Decision Making Resources
  • Prompt Payment and Claim Settlement

trade credit insurance

Trade Credit Insurance is an insurance policy and risk management product that protects a company's accounts receivable from loss due to credit risks such as protracted default, insolvency, or bankruptcy of debtors.  This insurance usually covers a portfolio of buyers and pays an agreed percentage of an invoice or receivable that remains unpaid as a result of protracted default, insolvency, or bankruptcy of a debtor.