Product Liability Insurance- (Some States) Cannabis License Required-CBD Optional But Recommended
Whether you have produced a cannabis/CBD product by growing or manufacturing it or have distributed/delivered, packaged, sold or just the brand name, you are now part of the supply chain. If a claim or lawsuit arises from a said product making an end user sick, causing injury to another third party or has adverse reactions of any kind your business came in contact with or touched, your business can now be dragged into a lawsuit.
With state regulated systems in place being able to trace back the source of a cannabis product, lawyers are chomping at the bits to build a case against everyone involved to line their pockets whether you agree with it or not. Product Liability Claims are one of the biggest if not the biggest exposures in the cannabis industry, and are a coverage no operation can afford to go without.
The purpose of this insurance coverage is for protection against financial losses related to court/lawyer fees, investigative costs, settlement or mediation fees. These fees quickly add up to only leaving the question: why would you leave your hard-work for business to be exposed in this manner?
Product Recall Coverage
This comes as a submlimit optional add on (endorsement), to cover costs associated with having to replace products due to a recall and any related costs with potential loss of business income.