At Veracity Insurance Solutions, we often hear our clients say how overwhelmed they feel when trying to select an insurance provider for beauty or cosmetic products liability. While this type of insurance is a little more complicated than your typical product liability policy, with a provider who specializes in this industry the process is easier. In order to help alleviate some of the stress associated with finding the right policy, here are some tips and guidelines for choosing a policy that best fits your business’s needs.
Make Sure You Get the Coverage You Need
When looking for an insurance provider, individuals are often inclined to choose the most affordable option. While budget is definitely an important aspect in selecting a policy, affordability shouldn’t be the only determining factor. One of the most important details when selecting a policy is what the policy actually covers. Because of the uniqueness of the beauty and cosmetics products industry, it is essential to have proper coverages like inland marine, product recall, and pollution legal liability, just to name a few. Without a comprehensive policy that covers all the risks associated with a beauty and cosmetics manufacturing, distributing, or importing, or reselling business, a company’s ability to stay afloat could be threatened.
Not All Beauty and Cosmetics Insurance Providers Are Created Equal
When choosing a provider, keep in mind that not all providers have the same level of experience with the beauty and cosmetics industries. There are many insurance providers out there that are writing policies for beauty products and cosmetics products that do not have a strong understanding of the industry. As a result, all too often products are misclassified, which causes problems when a claim is presented. In some cases, it means that the product isn’t covered at all. In order to avoid those headaches altogether, it is important to choose a provider that has experience writing those types of policies.
Make Sure the Product in Its Entirety Is Covered
This might seem like an unusual thing to say, but often times individual ingredients in a product are not covered within the policy. In essence, this means that the product really isn’t covered at all. If a claim were presented, there wouldn’t be any coverage for that product because of the ingredients excluded. What’s the point in having insurance if the product isn’t even covered?
Buying insurance for a beauty product or cosmetic might seem intimidating, but the most important thing is to have your policy written by a provider that specializes in that industry. In doing so, you can have peace of mind knowing that the business has all the coverage it needs to fully insure the product.