How much does Insurance for Dietary & Nutraceutical Companies cost?

The cost of insurance for Dietary & Nutraceutical companies will depend on several factors, including the size of the company and the stage of the company in its development process. Other factors include: Exposures: risks being insured. Company practices: views on safety, compliance, and risk management. Program structure: the amount of deductible and willingness for a company to assume more risk Claims history: the type and amount of past claims against the company

Insurance for Dietary & Nutraceutical Companies

Overview

Dietary Supplements and Nutraceutical companies are a sector within the life sciences industry. It’s a highly innovative space focused on bringing new treatments and technologies to the market each year.

With individuals taking more interest in their overall health, Dietary and Nutraceutical companies are evolving rapidly. Every year, there are discoveries and developments with the potential to improve the lives and health of people all over the world.

However, with such rapid growth and expansion comes increased exposures, as well. Because Dietary and Nutraceutical companies are amongst the fastest growing industries, this market faces ever-evolving risks.

Why is Insurance for Dietary & Nutraceutical Organizations Important?

The life science industry has unique risks that no other market faces. Not only do Dietary and Nutraceutical companies try to improve people’s health and lives, but they do it while navigating intense obstacles.

From FDA regulations to accurate advertising, from product development to acquiring patents, Dietary and Nutraceutical companies have many hurdles to overcome. Maintaining momentum in the market requires layers of protection from multiple angles.

Insurance is vital for Dietary and Nutraceutical companies to protect them from the cost of legal defense, regulatory action, consumer complaints, and a slew of other complicated roadblocks.

Cybersecurity

The average cost of a data breach is over $4M, and yet, nearly 67% of pharmaceutical firms have experienced significant data breaches. With vast amounts of data, dietary and nutraceutical companies face intense vulnerabilities. From notifying customers to providing credit monitoring, the risk is high. What’s more, is that cybersecurity threats tend to keep pace with innovative technologies.

Supply Chain

Like most life science companies, Dietary and Nutraceutical companies establish contracts with suppliers, manufacturers, and researchers worldwide. The US makes up only 45% of the global pharmaceutical market, after all. However, these professional relationships are delicate. Supply chains that stretch across the ocean can quickly disintegrate because of a natural catastrophe or global epidemic. Finding another subcontractor could prove to be time-consuming and costly.

Mergers and Acquisitions

Mergers and acquisitions (M&A) are a staple in any industry, but in the life science space, they tend to get complicated quickly. Various product development and patents muddy up the pipelines, and multiple subsidiaries in one organization make M&A a tricky process. To protect the transaction, it’s essential to identify potential problems while safeguarding company assets.

Product Failure

If a product fails to produce the expected results, it could mean a massive loss for a Dietary and Nutraceutical company. That said, around nine in every ten drug developments aren’t ever approved. When new products do hit the market, only 10% of them are successful. From advertisement to usage warnings, product failure presents a significant exposure in this industry.

Recommended policies for Dietary Supplement and Nutraceutical companies

Core Coverage

These coverages form the foundation of any risk management program for Dietary Supplement and Nutraceutical companies:

General Liability

General liability offers broad protection against some of the most fundamental risks companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.

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Workers' Compensation

When employees sustain work-related injuries, employers are typically responsible for their medical costs and lost wages. This policy covers these expenses, protecting employees while simultaneously keeping companies running smoothly.

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Cyber Liability

Cyber insurance protects companies from third-party lawsuits relating to electric activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.

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Employment Practices Liability Insurance

Any company with employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects companies against lawsuits related to employment practice

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Errors & Omissions Insurance

Professional liability, also known as errors and omissions (E&O) insurance, covers companies in third-party or client lawsuits claiming substandard work or service. Work errors or oversights, missed deadlines, budget overruns, etc., often result in costly cases — but E&O insurance responds to these mishaps.

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Dietary Supplement and Nutraceutical Specific Coverage

These policies are essential for or can be tailored to the needs of companies operating in the Life Sciences space

Product Liabilty

Companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Consider McDonald’s notorious “Hot Coffee” case in the 1990s, for example. No matter if the claims are grounded or not, this policy covers defense fees and settlements

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Dietary Supplement and Nutraceutical Insurance Frequently Asked Questions

The cost of insurance for Dietary & Nutraceutical companies will depend on several factors, including the size of the company and the stage of the company in its development process. Other factors include:

Exposures: risks being insured.
Company practices: views on safety, compliance, and risk management.
Program structure: the amount of deductible and willingness for a company to assume more risk
Claims history: the type and amount of past claims against the company

Types of Dietary Supplement and Nutraceutical Companies that need insurance

Suppliers
Manufacturers
Researchers
Developers

Packaging services
Distributors
Mixing services
Chemical product sourcing services

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

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Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

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Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

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Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager — Jonathan Selby, General Manager

Meet your specialist

Jonathan spent the first 5 years of his professional insurance career working as a generalist broker at a traditional firm on Long Island. Intrigued by the notion of how technology can be leveraged in the industry, Jonathan joined the Founder Shield team in early 2016 as an Account Executive, and quickly grew into his current leadership role of General Manager. He works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world.

Outside of work, Jonathan can be found on the basketball court and chess board (…but not at the same time.)

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