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August 1, 2011
LINCOLN, Calif.Supplement manufacturers can now be insured against Proposition 65 liability claims through the ThinkRisk Vitamin and Supplement Program, part of ThinkRisk's Converging Risk Liability Policy. The insurance program 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 throughAmerican Herbal Products Association (AHPA) member Grifcon Enterprises and Dick Griffin, the Vitamin and Supplement Program was specifically created to benefit companies in the dietary supplement marketplace. This policy provides businesses with protection in a number of key areas for digital-age businesses, 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.
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.
"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 Vitamin and Supplement Program is a prudent form of protection for AHPA members."
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.
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.
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