Cannabis Product Liability Insurance
Product Liability Insurance is an important coverage that is designed to respond in the event you get sued or get named in a lawsuit and are found liable due to a defective product, in any part of the supply chain or even just a brand that outsources all touching aspects. Businesses in the cannabis industry should know this is an evolving issue. Side effects happen even with the most curated products as well as people under the influence or use of certain cannabis, CBD/Hemp products can injure themselves or someone else and if you have any involvement with said product there is an exposure that exists.
Proactively informing yourself of state regulations, as well as cases involving cannabis operations similar to yours is recommended and suggested for all operation types. We understand product liability insurance in the cannabis industry is new and evolving, and may cause you to think it’s not necessary. Unfortunately, there has been an increase of cases brought up that accuse of defective cannabis products, constantly changing new guidelines and regulations that have caused product recalls. You can see these cases will grow as the cannabis business expands, with no standard federal oversight and regulation left to the state a lot of ambiguity or confusion can happen which can cause claim after claim.
Cannabis Product Liability can help mitigate risks or respond for legal costs/fees in these following possible events:
- Your Cannabis Product causes physical or bodily injury or illness to a third party.
- Product recall and withdrawal coverage.
- Costly lawsuits due to product malfunctions/defects.
- Financial loss- For example, if a customer is arrested for driving under the influence after using a product that was more potent than advertised, your business could be held responsible for fines and legal costs
- Property damage-If a user of your product causes an accident or damages others property or if a vape pen explodes and injures someone are examples of what this insurance can cover.
- Wrongful death-Mislabeling or wrong dosage listed on product can affect users differently which can impair judgement or capability to cause injuries or even death.