PRODUCT: Insurance for nutraceutical companies
COMPANY: Beazley Syndicates 2623, 623
BEST RATING: A (Excellent), Class XV
AVAILABILITY: Coverage is available through Beazley-appointed brokers.
FOCUS: Beazley Group, which focuses on health care professional liability and miscellaneous medical risks, has launched NutraGuardTM—an insurance form “crafted to meet the nuances” of nutraceutical firms, says John Livatino, nutraceutical underwriter.
Nutraceutical—a blend of the terms “nutrition” and “pharmaceutical”—refers to products that aim to include properties of both food and medicine. "With nearly two-thirds of Americans taking some type of nutraceutical product, we saw a real need within the insurance marketplace for a product form tailored to the precise needs of this market,” Livatino says, noting that companies in the sector face a “wide variety of exposures."
With NutraGuard, Beazley, which has underwritten nutraceutical risks since 2006, introduces “a specialized form that provides all the enhancements an insured would be looking for,” Livatino says. The form moves beyond general liability or product liability to a comprehensive nutraceutical risk management product.
Beazley says its approach distinctly targets nutraceuticals, as opposed to the larger sector of life sciences. Instead of patching together endorsements, the firm developed a policy that encompasses “all the necessary coverage for any business in the importing, manufacturing or distributing of nutraceuticals,” Livatino says. The policy also can encompass Beazley’s breach response privacy and cyber liability coverage.
UNDERWRITING: Beazley NutraGuard provides coverages customized for nutraceutical manufacturers and distributors with the flexibility to cover product liability, general liability, E&O, product recall expense, employee benefits liability, cyber/privacy and hired/non-owned auto insurance. It offers “a unique policy form that provides seamless coverage for the risks they face," says Evan Smith, miscellaneous medical underwriter and focus group leader at Beazley.
“The breadth and flexibility of the policy form reduces brokers’ concerns about offering the right coverage to their clients,” Livatino adds.
Insurance limits range from $1 million to $25 million and deductibles begin at $10,000.
MINIMUM PREMIUM: $10,000.
TARGET: Coverage is available to companies “active at all points of the nutraceutical industry value chain, from ingredient producers to product manufacturers to wholesale and retail distributors,” according to Beazley. The industry includes importers, producers and distributors with product lines such as dietary supplements, vitamins and minerals, lifestyle supplements, over-the-counter drugs, cosmetics and personal care, sports nutrition and energy products.
Beazley’s target market for the nutraceutical form is midsize to large entities with annual sales from $3 million to $5 billion, with a special emphasis on the largest risks. “We write all risks within the supply chain, including importers and raw material suppliers, contract manufacturers, manufacturers, private label distributors and retailers,” Livatino says, and “consider all types of nutraceuticals including the tougher classes of weight loss, sports nutrition, and sexual performance and energy products.”
COVERAGE TERRITORY: U.S. and worldwide coverages are available. First named insured must be a U.S.-domiciled company.
CONTACT: John Livatino, nutraceutical underwriter; Beazley Group, 333 West Wacker Drive, Suite 1400, Chicago, IL 60606; 312-476-6238.
Ronimarie Acord is an IA contributor.
