NBTY Raises Liability Insurance Requirements

NBTY Inc., Ronkonkoma, NY, following in the footsteps of Whole Foods Markets and Walgreens, and has begun enforcing higher liability and other insurance limits. The new requirements, rolled out in December 2012, and which NBTY may modify so as to make them more practical, especially for smaller suppliers, include the following minimums: product liability in the amount of $3,000,000; commercial general liability (not including product liability) in the amount of $8,000,000; employee dishonesty coverage in favor NBTY in the amount of $1,000,000; errors and omissions coverage and cyber liability coverage in the amount of $5,000,000; and automobile coverage in the amount of $1,000,000. For many NBTY suppliers, these requirements will mean additional premiums. The process of implementing the new requirements, and gathering the necessary documentation from suppliers, will be the responsibility of Global Risk Management Services (GRMS) of Irvine, CA, which has been retained by NBTY for this purpose. Exceptions to these requirements can reportedly only be made by NBTY, not GRMS, according to a spokesperson at GRMS.