As demand for CBD products continues to grow, businesses need to start realizing the importance of CBD insurance, whether it’s general liability, crop liability, workers’ compensation, or product liability. Not having CBD insurance can turn out to be costly for businesses that are part of the hemp and cannabis industry. CBD insurance provides coverage to the various legal and monetary exposures a CBD business can face. With companies facing cut-throat competition and vulnerabilities from different ends, it’s important to protect your business from legal and financial liabilities.
Businesses when they’re starting out might skip insurance, deeming it too expensive or complicated. However, when dealing with industry regulations, an insurance policy can prove instrumental both in the short- and long-term. Whether you’re running operations on a small scale or a larger scale, accidents can happen. Rather than threatening their operational existence, getting 420 insurance from insurance providers such as Coverall Canna ensures that a business is covered.
Understanding Product Liability
The loss associated with a product liability claim can be catastrophic for any business, with certain claims forcing a company to file for bankruptcy. In the past few years, there’s been a drastic influx of product liability claims due to compliance, labeling, CBD testing, and other issues. For example, if it’s responsible for the cultivation, manufacturing, and retail of CBD products, a business can face product liability claims for retailing CBD oil, chocolates, vapes, capsules, tinctures, etc.
Given that businesses operate within a heavily regulated market, they need to pick out their insurance policy carefully. Focused on getting their business up and running, several companies may not find it important to check out the details of their insurance plan. A claim can stifle an underinsured business or one without insurance. With each party in the chain of distribution liable for the damages, an insurance agency like Coverall Canna, helps companies protect themselves holistically.
Product liability insurance is either offered as part of the general liability policy or as a separate policy. It’s bought to protect businesses from first-party or third-party claims of property damage, bodily injuries, or any other damages associated with the products or services the company produces or retails.
First-Party Claims – This refers to any claim due to an injury, accident, inaccurate labeling, loss caused by manufacturing defects, or failing to warn consumers about the full range of potential hazards, such as the presence of carcinogens or inappropriate THC measurements.
Third-Party Claims – This refers to any claim that arises from damages caused due to the use of a product. This includes loss of wages, DUIs, property damage, bodily injuries, or any medical expenses. For CBD companies, the following incidents can result in a third-party claim:
- Any life-threatening ailment caused by the use of a faulty vaporizer cartridge;
- Faulty vaporizers that explode and cause bodily injuries;
- Selling any edible CBD product that causes food poisoning, owing to poor food quality standards;
- Any form of harm or damage that occurs due to misleading claims or false marketing campaign;
- Use of illegal pesticides leading to product recalls.
Coverall Canna can sell you a general liability policy or a product liability policy providing complete protection to your CBD business. If working with medical marijuana products, 420 insurance helps businesses operate according to the medical marijuana industry’s criteria, while maintaining risk protection. Whether the company is a medical marijuana cultivator or retailer, getting an appropriate insurance policy out can safeguard them against several issues.