This is an excellent time to expand your business into the online retail marketplace. The costs of entry of being an online dietary supplement company is far less than its physical counterpart, and the reach of potential customers is far wider. Additionally, the industry has benefited from a period of low claims, which have kept insurance rates down and more affordable to retailers.
It is important to know that the liability insurance requirements for various online retailers will all be different. Factors such as company size, volume of sales, types of products and included ingredients will determine the expected insurance coverage that you will need. Also, don’t assume that the coverage expected by Jet.com will the same as Amazon.com or Walmart. Each company will have their own expectations for a General Liability policy which may require you to make some adjustments to your coverage.
Each of the online retailers will have different ways of enforcing their liability requirements. Some are relaxed with little or no enforcement, while others are quite strict. Keep in mind that it is important to disclose any contracts with online vendors with your insurance broker so they can ensure your policy will meet all of the vendor requirements.
Having appropriate coverage within the dietary supplements industry is crucial to protecting your reputation and business. For more information about common dietary supplement insurance issues, check out our resource page. If you have further questions, please feel free to reach out to me or Greg Doherty at the Bolton Dietary Supplement Group at 626.535.1459.
If you liked this, check out these great articles:
- Dedication, Consistency and Results—A Formula for Professional and Personal Success
- An Update on CBD Product Liability Insurance
- Here’s What You Need to Know About Off-site Storage and Transit of Dietary Supplements and CBD-Infused Products
- Selling Dietary Supplements or CBD-Infused Products? Why You Need the Right Broker to Manage Your Product Liability
- Availability of CBD Liability Insurance (and Actual Coverage) is Often Scarce