DMAA Products Losing Liability Coverage

July 6, 2012

Poms & Associates reports that several liability insurers may be dropping DMAA coverage.

Insurance broker Poms & Associates (Woodland Hills, CA) reports that several companies offering dietary supplement product liability coverage plan to place DMAA (1,3-dimethylamylamine) on their “ingredient exclusions” lists.

Primarily used in weight loss and pre-workout products, DMAA has been linked to numerous adverse health effects and is already banned in several countries.

Greg Doherty, who leads dietary supplement insurance practice for Poms, explains the changing environment around DMAA:

 

I predicted this over a year ago, and now it’s happening. There has been too much negative press lately on DMAA, and eventually it was bound to catch the eye of some of the insurance company underwriters. 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."

 

Doherty added that liability insurance on DMAA is still available with other companies, but that window is closing.