Consumers have become increasingly aware of the benefits of CBD, with the popularity of CBD-infused products soaring by the day. One thing on your mind as a current or prospective business owner in the rapidly-growing sector is the requirement to carry insurance for CBD products. Whether you're a producer, distributor, or dispenser, you must be wondering whether your products are insurable. Keep reading for answers.
Insurance for CBD products can protect you against risks if you deal in or offer the following:
Some carriers or programs may not have insurance for CBD products with the following ingredients or characteristics:
CBD insurance protects your business against third-party claims that pertain to your everyday cannabinoid-related operations. You’ll often face liabilities that are unique to the type of business you operate. Provided that you’re offering a CBD product, the need to carry proper CBD insurance coverage remains.
Some CBD insurance programs are available nationwide, while others are only in select states or regions. Ask to be sure that you’ll be protected in all your CBD business locations.
Of all insurance policies available for your cannabinoid business, you should start with CBD product liability. This way, you’re covered if somebody sues you for losses/damages arising out of your product. One of the most helpful features of the policy is that it pays for your defense costs and other legal fees as a result of third-party lawsuits against your company. You can even get coverage beyond your policy limit for maximum liability protection.
Most CBD insurance policies do cover hemp crops. It’s still important to inquire about specific perils included in the coverage (and any exclusions). Also, ask about the total limit available for any one location. Usually, you can purchase crop coverage of up to $5,000,000).
You should invest in insurance for CBD products because of the inevitability of your risk exposure, whether you’re in the middle or the extreme end of the supply chain. However, most carriers deny coverage to cannabinoid operations because of their unusually high-risk exposure. At GrayStone Insurance Group, we’re different and passionate about providing comprehensive solutions to hard-to-place businesses like yours. Contact us today to get started on your CBD business insurance!