Like most sectors of the economy, COVID-19 is having a major impact on the health, nutrition, and lifestyle industry. And that is impacting insurance needs as well. Here are a few of the things we’re seeing at Admiral, and doing to adjust to the new reality:Larger Nutritional Supplement Companies are Expanding
The nutritional supplement industry is known for seeing a lot of startup businesses, especially with the explosive growth in the market for CBD products in recent years. But with the economy contracting, fewer people are starting businesses.
Instead, the economic climate is forcing smaller companies to reevaluate their position, and making mergers and buyouts more attractive. These companies are having to adjust their insurance coverage accordingly, which means that while we are seeing fewer new requests for insurance, we are starting to see more larger accounts. Admiral is a market for any size Health, Nutrition, and Lifestyle account!
More Businesses are Shopping Around for Insurance
With their businesses shut down or operating in a limited capacity, many owners have had more time to focus on things like finding the best deal on an insurance policy. This creates an opportunity for Admiral and our brokers, who are able to create personalized solutions for businesses, and can often provide more comprehensive coverage, cost savings, or both.Businesses are Requesting Higher Insurance Limits
The pandemic has caused many businesses to worry about their liability exposure, and resulted in many of them asking for higher insurance limits, just in case there is a problem with one of their products, and somebody files a claim. This applies to the manufacturers of nutritional supplements in particular — in many cases, it is the retail distributors who are requiring manufacturers to carry a higher level of insurance before agreeing to carry their products.
Some Companies are Starting to Produce Hand Sanitizers and COVID Testing Products
We’ve seen a number of requests to cover personal protective equipment (PPE), hand sanitizers, and COVID testing products. We know companies expand their product lines given consumer needs and Admiral is looking for the best approach possible. We are starting to entertain risks with incidental hand sanitizer and masks that have solid controls in place and are aware of the stringent FDA guidelines.
Additionally, we have a communicable disease exclusion, and are stressing the importance of following proper quality control procedures to prevent product contamination.
If you are a wholesale broker in need of an insurance partner with deep expertise in the nutrition industry, contact us to become an appointed broker. If you are a retail insurance broker with clients that include health and nutrition product manufacturers and distributors, we urge you to connect with one of our wholesale partners.