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What Type of Insurance for the Cosmetics Industry?

Those engaged in manufacturing, importing or distributing cosmetics can find themselves in trouble, should a claim or lawsuit be made against them.

Who would protect them in the event of an allergic reaction or injury claim?

What about in the case of misleading advertising in regard to a personal care product?

Insurance for Cosmetics Manufacturers

General liability insurance coverage that includes products and broad form vendors liability can protect a manufacturer or importer from related claims. In this industry, the products liability exposure is especially perilous. This is because of the possible damaging effects on consumers’ eyes and skin. Depending on the kind of cosmetics that are manufactured, there are also substantial property and business income risks. Of note in this line of business is the fact that the base of many brands of cosmetics are made from acidic and explosive chemicals.


Insurance for Cosmetics Distributors

Cosmetics distributers include both retail suppliers and those who operate through joint ventures that involve the retailers selling the product through other parties or approaches (such as online). Clearly, those who participate more in the development, recruiting efforts and remuneration of the retailor carry more risks. Regardless, all distributors have weighty property exposure due to the stock that must be stored on premises.

Insurance companies are particularly concerned about:

  • Lacquer nail polish and its low ignition point
  • Cosmetics in general because of their innate loss exposure due to minimum recovery value
  • Transported goods have minimum recovery value following an accident

Workers Comp for the cosmetic distributor varies according to activity.

For the cosmetics manufacturer, importer and distributor, a customized plan has nationwide availability.

For more information, contact a knowledgeable, independent agency with the underwriter contacts and experience that back its policies.


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Summary: For the cosmetic manufacturer, importer and distributor, risk exposure is great. Find out about all angles of tailored coverage from PRIME Insurance.


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