The coverage of dietary supplements under product liability

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The coverage of dietary supplements under product liability

On Behalf of | Dec 28, 2021 | Product Liability |

Product liability laws require that companies protect consumers who are at risk of being injured by defective products. For example, someone who purchases a defective dietary supplement may suffer injury and file a lawsuit against the manufacturer. Companies typically protect themselves from lawsuits by having product liability insurance coverage. Dietary supplement companies in Texas have to ensure that they are adequately covered in case of a minor or serious incident.

Dietary supplements are covered

The issue of product liability involves the damages caused by dangerous and defective dietary supplements. If the supplement manufacturer is at fault for making a defective product, their insurance company will typically cover their legal defense fees. However, there are policy limits and exclusions, such as exclusions for certain types of ingredients.

How companies try to protect themselves

Dietary supplement companies buy commercial liability insurance to protect themselves from lawsuits. Most companies have a basic form of general product liability coverage in case they receive claims. However, this type of policy may be inadequate and require the purchase of additional coverage.

Each company has to review the severity of risks that they face. In addition to basic product liability, they can add coverage policies for product recalls, bodily injuries and worldwide coverage for products sold in two or more countries.

Dietary supplement companies aim to protect their assets

Product liability insurance decreases the risks that a company will be run out of business if they face a lawsuit for selling or manufacturing a defective supplement. However, there are limitations to this insurance coverage and what the policy will pay for if a company gets sued for causing an injury to a consumer who purchases their supplements.

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