A unique new liability insurance program that for the first time responds to California Proposition 65 claims is now available to American Herbal Products Association (AHPA) members and other companies in the dietary supplement trade.
The ThinkRisk Vitamin & Supplement Program, part of ThinkRisk's Converging Risk Liability Policy, also provides coverage for false advertising and other similar claims, including labeling claims. Additionally, coverage is provided for media and intellectual property claims, such as trademark and copyright infringement, as well as for the consequences of a breach of data security.
Available through longtime AHPA member Grifcon Enterprises and Dick Griffin, who has served as the manager of AHPA's longstanding liability insurance program for more than 15 years, the V&S Program was specifically created to benefit companies in the dietary supplement marketplace.
"AHPA worked very closely with ThinkRisk and Grifcon Enterprises on the Proposition 65 component of this program to develop a comprehensive and important offering of risk coverage that has not been previously available to dietary supplement companies," said Michael McGuffin, AHPA president. "In light of the highly expensive litigation costs that we've seen for companies to respond to Proposition 65 claims—often exceeding $100,000 per settlement—this new V&S Program is a prudent form of protection."
This highly flexible policy provides businesses with protection in a number of key areas where digital-age businesses now do business—and which are often not covered in traditional commercial general-liability coverage. Participants in this program will also have access to risk-management material to mitigate their exposure to claims in these areas.
Specifically, the new V&S Program includes coverage for:
- Claims brought under California's Proposition 65, including defense expenses; attorneys' fees; and civil penalties, but only up to a specified sublimit, typically $100,000.
- All forms of advertising, including websites, print and broadcast advertising, product labeling, email, blogs, and social networks; media and intellectual property perils such as trademark and copyright infringement, and defamation; false advertising, misleading labeling or other unfair or deceptive trade practices.
- First-party and third-party costs arising out of a breach of data security, including notification costs, data restoration, crisis management, credit monitoring, cyber investigation, cyber extortion, and civil fines and penalties
This new coverage is backed by the financial strength of Great American Insurance Group and is rated "A" (Excellent) by A.M. Best as of the most recent rating evaluation dated May 10, 2010.
For more information on this innovative liability insurance program and to evaluate how the coverage can address your company's insurance needs, contact Dick Griffin, Grifcon Enterprises, via phone: 916.434.8874 or visit the firm's website.
As an additional resource, in 2010, AHPA created a "Primer on Products Liability Insurance for the Dietary Supplement Industry," to provide a basic understanding of products liability insurance and the processes involved in purchasing this insurance by dietary supplement companies. This document is organized in a question and answer format and addresses numerous issues that are commonly encountered in obtaining products liability insurance. Click here to download the AHPA insurance primer.
About the American Herbal Products Association
The American Herbal Products Association is the national trade association for and the voice of the herbal products industry. AHPA is comprised of domestic and foreign companies doing business as growers, processors, manufacturers, and marketers of herbs and botanical and herbal products, including foods, dietary supplements, cosmetics, and non-prescription drugs. Founded in 1982, AHPA's mission is to promote the responsible commerce of herbal products. www.ahpa.org.