Bolton and Company, Pasadena, CA, has launched a new, broad coverage insurance program for dietary supplement companies. Designed primarily for non-perishable finished goods, the program utilizes Lloyd’s of London as the carrier. It focuses on two exposures often overlooked and/or underinsurred by supplement companies: goods while in transit (most often via truck) and while at a fixed location, commonly a third party fulfillment house.
 
“We put this program together to fill a void in the insurance market. Historically, we’ve found that insurers generally have an aversion to insuring the finished goods inventory of supplement companies. We’ve solved that,” said Greg Doherty, supplement practive leader at Bolton. “Better yet, we’ve upgraded the recovery basis to selling price instead of the more traditional replacement cost valuation. This means that if your goods are destroyed in a truck crash or in a fire at your fulfillment house, you will get a check from the insurance company that includes your lost profits. This also eliminates the draconian task of completing a business income worksheet for your insurance company.”
 
The program also addresses the mistaken belief held by many that if your goods are in a third-party fulfillment house, the fulfillment provider is insuring your inventory. Mr. Doherty added, “In my experience talking with fulfillment houses, 95% of them say they do not insure their customer’s goods, and usually that provision is found buried in their contract. I think there are hundreds of supplement companies out there that have overlooked this potentially catastrophic exposure.”