Distributors in the dietary supplement and natural health products business are now requiring higher liability insurance limits for their suppliers.
Good news is that insurance rates are now lower than they have been in a while.
Greg Doherty, a managing director of the dietary supplement practice group with the Pasadena, CA-based insurance firm Bolton & Co., shares that customers have told him that KeHE distributors are not asking for $5 million in liability insurance from suppliers.
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Doherty says he isn’t so sure if this is simply a knee-jerk reaction from all the bad press the industry has recently received as a result of the actions of the New York Attorney General.
Instead, he says, there are other factors driving the long-term trends in the insurance market and the underwriters have to manage the risk over years rather than responding to momentarily heightened elements such as bad press.