The New York Attorney General recently ordered four major retailers to stop selling herbal supplements that it alleged did not contain labeled ingredients or contained ingredients not explicitly identified on the labels. Companies throughout the supply chain may wish to examine their insurance policies and evaluate whether or not they are properly covered in the event of investigative, enforcement and/or litigious actions. Reed Smith attorneys Brian Himmel, Traci Rea, Evan Knott and Robert Deegan discuss the insurance options available for companies in the supply chain in “Pursuing Insurance Coverage for Alleged Mislabeling of Dietary and Herbal Supplement Products: A ‘Holistic’ Prescription.” Insurance policies which might provide coverage are commercial general liability (CGL), directors and officers liability (D&O), errors and omissions liability (E&O), and product recall policies. The authors also urge companies facing potential issues to consider whether notice should be given to insurers with policies potentially providing coverage, even if no formal claim or lawsuit has been filed.
To read the client alert, click here.