The global dietary supplements market amounted to $133 billion in 2016, according to a report published by Zion, a market research firm, in January. The report added that this life sciences segment is expected to grow at 8.8% annually to reach $220 billion in 2022.
As the market grows, so do the risks, especially for US manufacturers who are covered by California’s Proposition 65 statute. The law requires manufacturers to properly provide warning labels on their products which may contain chemicals that could cause cancer or reproductive toxicity when ingested at certain levels.
To address these emerging risks,
LifeScienceRisk (LSR) developed a proprietary Proposition 65 product that provides specific coverage for the dietary supplement manufacturing industry.
LSR is a specialty series company of RSG Underwriting Managers.
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According to a company statement, the product is a standalone insurance policy that can be bundled with LSR’s core liability coverages, including product liability, error and omission liability, general liability and cyber liability.
The Proposition 65 policy was developed with Lloyd’s syndicates and covers six chemical elements that are present in dietary supplement and herbal products. The accompanying support portfolio includes bespoke services, tailored coverage forms and collaborative risk assessment. It will be made available to qualified retail and wholesale brokers who may have identified client risk in this space.
“Today I am thrilled to introduce this essential coverage to the dietary supplement industry,” said Mark Wood, LSR president in a statement. “The team at LSR, with the aid of the American Herbal Products Association (AHPA) and its president Michael McGuffin, conducted extensive research to understand, develop and create a specialty insurance solution to meet an expressed need for our clients in this space.”
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PATRICK G. RYAN
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