Only a handful of companies offer product liability coverage to the dietary supplement industry, the Natural Products Insider reports, and now two of those companies plan to add DMAA (dimethylamylamine) to their “ingredient exclusion” product liability coverage lists.
The FDA has issued warning letters to supplement makers who use the ingredient and class action lawsuits have already been filed. The Agency warned that the chemical can pose life-threatening health risks. Also, DMAA-containing products have been banned by the Department of Defense from U.S. Military commissaries after the deaths of two soldiers were allegedly associated with products containing DMAA.
Greg Doherty of Poms & Associates Insurance Brokers Inc., told Natural Products Insider, “Two carriers will now exclude it, although one has hinted that they may offer coverage for products containing DMAA on a ‘carveback’ basis, which means that based on the type of products being sold, the dosage of DMAA and the volume of DMAA sales as a percentage of overall sales, this carrier might offer DMAA coverage for an additional premium. The key word is ‘might.’”
He continued, “Companies currently selling DMAA and want it to be covered in the future face a real dilemma. Because of the claims made nature of product liability policies for dietary supplement companies, the product you sell today will likely not produce a claim until some date in the future. If your future policy has a DMAA exclusion, and that claim rolls in, there won’t be coverage, even though the policy in your file today covers DMAA.”