Supplement Business Insurance
Getting insurance for your supplement business is essential.
This is because supplement businesses need to be protected from a variety of different risks, such as those that relate to product liability disputes, commercial property damage (e.g., of inventory, etc.) and contract violations.
Business insurance can also be pivotal when it comes to safeguarding your assets against employment law disputes.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Supplement Business
General liability insurance is — generally speaking — one of the most important insurance policies for supplement businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Having said that, your supplement business could benefit from purchasing additional coverage; this is because a general liability policy will not be enough to cover it from all of the potential risks that could cause it serious financial damage.
For example, you will want to protect your business’s assets against:
- Property damage or theft: Commercial property insurance
- Employment law disputes: Workers’ compensation insurance
- Health concerns as a result of supplements: Product liability insurance
- Lost income due to shutting down: Business interruption insurance
When you are attempting to find the right coverage provider for your supplement business, you will notice that all of the options tend to fall on to one of the following two categories:
- Traditional brick and mortar insurers (e.g., The Hartford, CNA, etc.).
- Online insurers (e.g., Tivly, Next Insurance, etc.).
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Cost of General Liability Insurance
On average, supplement businesses in America spend between $350 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a supplement business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Supplement Business
Example 1: After a meeting at your place of business, a client slips on the icy pavement in your parking lot. She sustains a concussion and a fractured wrist in the fall. General liability insurance would cover the injured client’s medical bills.
Example 2: A customer falls ill after consuming product from a bad batch of one of your vitamins and sues your business. General liability insurance would pay for your legal defense, the customer’s medical bills, and any other court-awarded damages.
Example 3: During a meeting at a potential new client’s shop, you move some paperwork to make room to sit down and then that paperwork gets hot and starts a fire. General liability insurance would cover the cost of repairing or replacing the potential client’s damaged building and its contents.
Other Types of Coverage Supplement Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you strive to manufacture and sell supplements that satisfy your clients and their customers, there’s always a chance someone might decide your product resulted in an illness or injury. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
You can typically purchase this coverage as part of a business owners policy (BOP).
Commercial Property Insurance
You made a major investment in the equipment, supplies, and real estate needed to establish your supplement business. In the event of a fire, theft, or severe storm, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.
You can typically purchase commercial property insurance as part of a business owners policy (BOP).
Inland Marine Insurance
While commercial property insurance covers your business property when it resides on your premises, it does not protect that property once it leaves your facility. Inland marine insurance fills this coverage gap by protecting your business assets while out in the field or en route to a client’s shop.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a workplace accident.
Insurers typically offer workers’ compensation insurance as a standalone policy.
Business Interruption Insurance
If you need to close your business temporarily after a fire, severe storm, or other covered event, it could take weeks, months, or even years to complete the necessary repairs. Business interruption insurance helps cover your expenses and lost revenue until you can reopen. Many policies also offer extra expense coverage, which can help you set up a temporary location while you make repairs to your facility.
You can typically purchase this coverage as part of a business owners policy (BOP).
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your supplement business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Supplement Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Generally speaking, yes. This is because getting business insurance before you begin interacting with customers and/or purchasing equipment will be relatively inexpensive, and it can save you money in the long run.
If you have employees, you will likely be required by the state you operate in to purchase workers’ compensation insurance.
Not necessarily. Certain exceptions may be written directly into your supplement business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.