Cannabis is one of the fastest-growing industries in the U.S., but rapid growth brings new risks. As products move from cultivation to manufacturing to retail shelves, businesses face potential liability every step of the way. Product recalls, customer disputes, and lawsuits are not just theoretical — they are happening with increasing frequency. That’s why product liability insurance is one of the most critical coverages for cannabis operators today.
Cannabis products are consumed, inhaled, or applied directly to the body. That makes quality control and accuracy essential. Unlike many industries, cannabis still operates in a patchwork of state laws without federal oversight, leaving businesses exposed if something goes wrong.
Even with strict protocols, mistakes can happen. Without proper insurance, the financial impact of a single claim could put your company at risk.
A product liability policy is designed to protect cannabis businesses from claims alleging that a product caused harm. Coverage typically includes:
Without this coverage, businesses are often left paying out of pocket for expensive litigation and settlements.
In cannabis, liability doesn’t stop with the producer — every link in the supply chain can be named in a lawsuit.
Cannabis businesses face unique exposures that make product liability coverage essential. Whether it’s contamination, mislabeling, or potency disputes, the financial fallout from even one claim can be devastating. Insurance provides the protection you need to defend your company, protect your reputation, and continue operating with confidence.
At Cover Cannabis, we help cultivators, manufacturers, distributors, and dispensaries find tailored product liability policies that keep pace with this fast-changing industry.
Contact us today to discuss coverage options that protect your cannabis business from costly claims.