Legal Question in Insurance Law in Minnesota

What kind of insurance do I need for a food/dietary product?

I am starting a supplement company

and am having trouble deciding what

insurance coverage I need to get (if

any). I only am planning on having

one product for the time being.

I run through a separate company

for manufacturing However, since

this is my own formula I'm assuming

I will need to get my own insurance.

The formula is composed of all

natural ingredients like vitamins, the

only thing I am worried about is

some caffeine that will be in the mix.

So I guess my question is, since I am

just starting out, what kind of

insurance do I need to get for a

product like this? Do people normally

just get liability, or do I need

something more?

I am forming an LLC this week and I

imagine that would make a difference

in the type/amount of insurance I

have to get.

Of course like most other people

starting out, the budget is limited,

but I still want to have my ass

covered.

Thanks!

Nick


Asked on 3/05/09, 12:02 pm

1 Answer from Attorneys
Daniel Reiff Reiff Law Office

Re: What kind of insurance do I need for a food/dietary product?

Nick, I would first get a Commercial General Liability (CGL) policy and then get some endorsements. There may be other types of insurance you may need, too, such as life and/or disability. There are health, unemployment, and worker's comp insurances you may need. I would want to know more facts about your situation before specific products are dicussed.

I would speak to a KNOWLEDGEABLE commercial insurance agent. Just because the agent provides commercial insurance does NOT mean the agent knows anything about it. I can provide you with a referral if you like.

I would also speak to a lawyer ASAP if you don't already have one. The business really should be created properly to protect you. There are a number of issues that are broader than just filing the Articles of Organization here. Be prepared to spend some money on a lawyer now. This may well save you a great deal of money in the long run, in taxes, administration, and liability. I have seen too many problems arise later on that should have been addressed up front but weren't and are now MUCH more expensive to fix.

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Answered on 3/05/09, 12:18 pm


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