The popularity of cannabidiol (CBD) products continues to increase as more consumers appreciate the potential health and wellness benefits. In 2020, the global CBD market was worth $2.8 billion and was projected to grow at a compound annual rate of 21.2% from 2021 to 2028. However, those looking to succeed in the CBD business must confront an unfortunate reality: the complex and confusing legal environment. These entrepreneurs should invest in liability insurance for CBD companies to protect their bottom line. Here’s an in-depth look into CBD product liability insurance
Your first line of defense against CBD liability litigation is avoiding making false health claims about your products. As per the U.S. Food and Drug Administration (FDA), you can’t promise consumers that your CBD offerings can treat, mitigate, prevent, or cure medical disorders like cancer or Parkinson’s disease.
There’s a lot of confusion over the legal status of CBD products derived from hemp. Unlike marijuana, the hemp plant is an agricultural crop rather than a controlled substance as per federal law. Since states are also regulating CBD, there might be gray areas impacting critical aspects of cannabidiol businesses in your location. You need liability insurance along with expert insurance advice, just in case!
More: What Are the Insurable CBD Products?
CBD product liability insurance is a policy that protects your business when a consumer claims that your products harmed them. It’s generally an important component of cannabis manufacturing insurance. You also need this liability protection if you supply or produce CBD/hemp products.
Insuring your hemp cannabidiol business can help in ways such as:
There are two main types of insurance for CBD companies. These are:
If you deal in or advertise cannabidiol online or offline, you’re in a high-risk business. However, you can operate profitably by leveraging CBD insurance services with GrayStone Insurance Group. Contact us today for a customized CBD product liability policy!
