Insurance for Dietary Supplement & Nutraceutical Companies

Commercial General Liability (CGL) is a foundational insurance policy that protects the company from the financial consequences of common, non-product-related claims. This includes bodily injury and property damage claims that occur on the company’s premises (e.g., a visitor slips and falls at a warehouse) or arise from business operations not directly related to product consumption. The CGL policy also provides coverage for reputational harm, such as libel or slander in advertising, offering a necessary layer of defense against general business risks.

Product liability is arguably the most critical policy for the nutraceutical sector. It specifically covers claims where a consumer alleges that the final product—the dietary supplement, vitamin, or functional food—caused bodily injury, sickness, or death. This includes claims arising from manufacturing defects, contamination, undisclosed or mislabeled ingredients, and failure to provide adequate warnings. Because supplement companies are held strictly liable for the safety of their ingestible products, this policy is essential for covering defense costs and any resulting settlement or judgment.

This policy protects the physical assets of the business, including the manufacturing facility, laboratories, packaging equipment, and inventory (raw materials and finished supplements) from covered perils like fire, theft, and severe weather. It ensures the financial resources are available to rebuild and replace mission-critical infrastructure after a covered property loss.

Required by most states for any business with employees, this policy covers medical expenses and lost wages for employees who suffer work-related injuries or illnesses. For nutraceutical manufacturers, this includes covering risks associated with operating heavy machinery, chemical exposure, or injuries sustained in the laboratory or on the production line.

This specialized coverage handles the direct financial loss incurred when a product must be removed from the market due to known or suspected contamination, adulteration, or mislabeling. It pays for the high, non-litigation costs of a recall, including notification expenses, shipping, warehousing, disposal of the product, and crisis management/PR to protect the brand’s reputation.

Highly critical for e-commerce brands and any company storing customer data, this policy protects against losses resulting from data breaches, hacking, and cyber extortion. It covers the costs of forensics, customer notification, credit monitoring, and legal defense against lawsuits resulting from a failure to protect private customer information.

This policy protects against third-party claims alleging financial loss due to a professional error, mistake, or negligence. For this industry, it often extends to cover mislabeling or advertising injury—claims where the product’s function, efficacy, or ingredients were misrepresented, leading to regulatory fines or consumer class-action financial claims that do not involve bodily injury.

Often an endorsement on a Commercial Property policy, this is vital for manufacturers. It provides reimbursement for lost net income and continuing expenses (payroll, utilities) if a covered property event—like a fire, major contamination requiring equipment shutdown, or lengthy cGMP enforcement action—forces the facility to temporarily cease or significantly slow operations.