Managing risk is critical to every business. Risk management is especially important to supplement and nutraceutical companies because of regulatory oversight from the FDA and FTC, potential civil action by customers, and infringement by competitors.

Comprehensive risk management begins with the right insurance coverage for dietary supplement product liability risks, but it does not end there. Supplement companies can avoid liability and pitfalls through agreements, the right policies, and good public relations. Too many supplement companies make the costly mistake of thinking that risk management ends when they write their insurance premium check.

Companies need to examine the potential liabilities of every element of their business:

• Corporate structure
• Operations
• Employee manuals
• Supplier contracts
• Distributor contracts
• Marketing agreements
• Advertising claims and endorsements
• Crisis communications
• Intellectual property

A comprehensive review can anticipate problems and help resolve unforeseen circumstances once they arise.