Specialist lines underwriting agency CFC Underwriting kicked off the New Year with an announcement that it had added an innovative product to its life science suite of products. This new insurance product is specifically designed for nutraceutical businesses in the U.S. More than ever before, interest in health and nutrition-related products are on the rise, which is both exciting and challenging for the nutraceutical businesses themselves.
The nutraceutical industry experiences many obstacles and deals with many risks. According to CFC, the range of these risks are both “traditional and emerging”. These risks often make it very difficult for nutraceutical merchants to secure the services they need to operate smoothly and efficiently; this is one of the many reasons why payment processing services (e.g. nutraceutical merchant account ) and insurance solutions are key to these business’ success.
The CFC’s new product takes into consideration both types of risks (traditional and emerging) and combines them into a single package. According to the CFC, this product includes product liability, commercial general liability and cyber. Businesses are also able to secure broad product recall cover, which protects against accidental contamination, malicious product tampering, cyber malicious product tampering, product extortion and government action.
In the development of this product, special attention was given to cyber. The CFC was careful to tailor the cyber cover in this new policy to address changes to manufacturing infrastructure caused by cyber-attack. Another offer – and anever-growing concern for merchants – is defined cover for extortion, intended to address the increasing threat of ransomware and cybercrime.
“We’ve had a lot of success with our life science and medical devices products, so providing a policy for the growing nutraceutical space felt like a natural next step in developing this suite,” says Life Science Team Leader, Sean Burke.
CFC’s streamlined insurance solution provides a product liability limit of up to $5m and a general liability limit of up to $7m. Premiums start as low as $2,500.
CFA Underwriting, a Lloyd’s MGA specializing in developing and distributing insurance products for niche markets for clients in over 60 countries, is confident that this new product will provide the ideal solution for nutraceutical companies. “We believe we’ve provided a well-rounded policy making it easy for these businesses to get essential coverages like products liability while also addressing emerging risks such as cyber crime, recall events and more.”
Author Bio:Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 nutraceutical merchant account company, serving both traditional and high-risk merchants.