Product liability Insurance provides coverage in the event you are found liable due to a defective product, whether you manufacture or just sell the product to a consumer. For businesses in the cannabis industry, this is an evolving issue. Product Liability will ensure that you are covered in the event consumption or use of your product causes illness or side effects. Additionally, it can provide protection if a third party claims an accident happened while consuming/using your products.
Here at Cover Cannabis we recommend being proactive and minimizing your risk by informing yourself of state regulations, as well as cases involving cannabis operations similar to yours.
Cannabis Product Liability can help mitigate in these following possible events:
We recognize that product liability insurance in the cannabis industry is new and evolving, leading you to believe it is not necessary. However, there has been an increase in the number of cases brought up that deal with accusations of defective cannabis product, as well as new guidelines and regulations that have caused product recalls. We expect these cases to grow as the cannabis business expands. Furthermore, we see it becoming more and more problematic as the cannabis industry is not regulated on a federal level and individual states are creating their own legislation and guidelines. Without formal testing, packaging and safety standards in place, operators of all cannabis businesses are an easy target for lawsuits. All businesses in the supply chain are also at risk.
If you have questions on whether or not cannabis product liability coverage is a good idea for your operation, talk to one of our Cover Cannabis expert representatives today and discuss your current needs. They will be able to guide you and advise on the right coverage for your cannabis operation.
Get a free quote today!