Custom-tailored liability insurance programs exist for cosmetics manufacturers and distributors. Pachama Cosmetics will be investing in an industry specific business insurance policies that fall under the basic insurance categories: Professional Liability, Product Liability, General Liability, and Commercial Property Insurance.
These policies will cover most risks our business will likely face. As our business will be manufacturing and distributing, product liability can represent a major risk factor; as a result, product liability insurance is a necessity in order to protect the assets of our business.
Employers are required by law to maintain adequate workers compensation coverage on their employees and, depending on state/country-specific laws, may be required to offer unemployment coverage for employees as well. Pachama Cosmetics will be headquartered in New York State and will comply with all insurance requirement of the state.
Pachama needs to protect its foreign interests because business insurance policies sold in the U.S. generally do not provide coverage for many of the exposures that could possibly occur outside of the U.S. coverage territory. Overseas jurisdictions often require policies and extensions that can only be provided under a Foreign Package policy. A Foreign Package policy will also provide protection of assets that could be seized, provides for the continuation of future foreign business, and may allow foreign judgments to be satisfied in the U.S.
The following are standard insurance coverages included on a foreign package policy available to cosmetic, health and beauty manufacturers, distributors, importers and exporters:
- Foreign General Liability
- Foreign Automobile: Coverage provided for Owned, Hired or Non-Owned Vehicles outside the U.S. coverage territory. Optional physical damage coverage is also available.
- Foreign Voluntary Compensation & Employers Liability
- Foreign Travel Accident and Sickness
- Foreign Commercial Property