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OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

Why CBD Businesses Need Product Liability Insurance

The sale and use of CBD products have become more and more popular in recent years, but the legalities of CBD and other hemp products is hazy for some business owners and most consumers. While the positive qualities of CBD products cannot be denied, there is still an issue with its connection to the psychedelic counterpart THC. 

At OG Cannabis Insurance, we have the product liability insurance you need to ensure the stability and profitability of your CBD company. With over 18 years of experience in the insurance industry, we have the knowledge needed to help you analyze your business’ particular concerns and get you the product coverage you need.

What Is CBD Product Liability Insurance and Why Do You Need It?

As with any business that sells a product, there is a chance that a customer may have an adverse reaction, be displeased with, or feel harmed by the product. In these cases, the consumer may file a suit against your company, so product liability insurance can cover you in these circumstances. 

CBD and cannabis product liability insurance also protect your equipment and product in the event of a major loss. Regular insurance will generally not cover your CBD business, so you need to have specialized insurance that understands the particular needs of a CBD company. From medical issues to legal disputes, the CBD business is one of the most unique industries in our modern world so your company requires unique CBD insurance.

There are several unique circumstances that CBD businesses need to have product liability insurance for that other types of companies may not have to account for. 

These include:

  • Legal: CBD can be derived from marijuana, so shipping it from one state where marijuana is legal to one where it is not can cause trouble with the courts. Noting that your CBD product is derived from hemp is especially important. Because the science of CBD’s effectiveness and safety is still not conclusive, the legalities of CBD are difficult to navigate.
  • Medical: It is important that your products do not claim to cure, treat, mitigate, or diagnose any medical conditions. Product liability insurance can help with any disputes that may arise if a customer misinterprets your labels or advice. You must make sure that your customers understand exactly how your products should be used and have reasonable expectations for their efficacy without handing out medical advice.
  • Ingestible: Because you may not be a doctor, it is difficult to assess how an individual customer may react to your products without knowing their medical history. Gender, age, biochemistry, genetics, weight, and a plethora of other factors may negatively affect the interaction of an ingestible product with their bodies.
  • Topicals: It is commonly known that CBD can help relieve pain through topical creams and ointments. However, insurance claims have also been filed pertaining to these creams due to contaminants and allergic reactions. You need product liability to ensure that these claims do not bankrupt your business.

In the murky waters of insurance and legalities when it comes to CBD, it is critical that you have the proper cannabis insurance to cover your livelihood.

Contact Us for a Customized Product Liability Insurance Quote 

At OG Cannabis Insurance, we have the knowledge, skills, and experience required for your specialized insurance needs. Your CBD product business has a set of special requirements in various fields (legal, medical), and you need to have the product liability insurance that is customizable and as unique as your business. When it comes to your CBD and cannabis product liability insurance needs, contact us for a customized quote.

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