☰ ˟
Alliance circular logo listing Alliance services : Insurance, Payroll, Benefits, HR 
Home Page Email
  • Home
  • Business Insurance
    • Business Insurance Solutions
    • Workers Compensation
    • General Liability
    • Bonds
    • Cyber Liability
    • Professional Liability
    • Group Health
    • Payroll and HR
    • Trade Credit Insurance
    • Key Person
    • 401k
    • Safety Programs
  • Personal Insurance
    • Personal Insurance
    • Home/Auto/Life
    • Automobile
    • Homeowners
    • Valuables Insurance
    • Life
    • Motorcycle
    • Off-Road Vehicles Insurance
    • Renters
  • Industry Solutions
    • All Industries We Serve
    • Commercial Real Estate
    • Construction
    • ContractorsImage of right arrow
      • Window Cleaning Insurance
      • Fire Protection Insurance
      • Janitorial Services
      • Landscaping & Lawn Care
      • Alarm Installation Insurance
      • Tree Service & Arborists
    • Crane, Rigging, & Crane Operators
    • Manufacturing
    • Oil & Gas
    • Restaurant & Bars
    • Gym and Fitness Center Insurance
    • Medical Malpractice Insurance
    • Trucking
  • Our Team
    • About Us
    • Location(s)
    • Associate Agencies
    • Testimonials
  • Blog
  • Contact Us
Business
Insurance
Home/Auto
/Life
Health &
Benefits
Payroll
& HR
Home > Blog > Product Liability in the Cannabis Industry
THURSDAY, JUNE 24, 2021

Product Liability in the Cannabis Industry

glass jar full of cannabis sitting on a deskIf you work within the cannabis space, you know that manufacturing quality products is the most important part of sustaining business. From the point of cultivation to the end user, it is important that marijuana dispensaries reduce the possibility of contamination. They can do this by implementing proper risk management and loss control measures.

As more states begin to relax their cannabis laws, more Americans are becoming open towards cannabis usage. This will make product liability become the focal point for operations across the country.

What is Product Liability Insurance and Why is it Needed in the Cannabis Industry?

Products liability protects your business from damages arising from physical loss resulting from a covered product. If a defective product is consumed or used, a business is opening themselves up to lawsuits. THC may alter the way humans behave. Cannabis companies, particularly ones producing edibles, must indicate to consumers the strength of their products, while keeping high liability limits on their insurance policy.

Many businesses may not realize that their products liability coverage is inadequate. When partnering with an insurance broker, make sure they explain how flexible the carrier is at avoiding unwanted, exclusionary language that will leave your business exposed. 

Pay attention to how your policy defines “bodily injury”. Some may narrowly define this, while others will allow a broad definition. If you operate in multiple states, be aware that product coverage may differ depending on where the operation is located.

Cultivators can ensure proper handling with basic strategies to reduce cross contamination. These include frequent hand washing and protective clothing. Keep equipment decontaminated as much as possible, and test product for mold and mildew once it's harvested. Understand the source of contamination so you may avoid it as much as possible. 

At Alliance, we have several carrier partners offering cultivators and dispensaries rich coverage terms. These will allow companies to scale their operation in the most effective way possible. Contact us today! Let us give you sincere advice on how to properly protect your assets in this highly dynamic industry.

 

kyle hoffman profile picture

Article by Kyle Hoffman

Kyle Hoffman helps cannabis companies implement risk management strategies that allow them to scale their business without sacrificing coverage. He consults with small to midsize cultivators and dispensaries on how to navigate the insurance market by putting together practical solutions that build confidence, drive revenue, and reduce total cost of risk.

Connect with Kyle on  linkedin logo

Posted 5:04 PM

Tags: product liability, cannabis
Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

  • business insurance(102)
  • personal insurance(73)
  • small business(30)
  • homeowners(28)
  • car and auto(28)
  • health and benefits(26)
  • health insurance(19)
  • cyber(19)
  • saving money(18)
  • contractors(17)
  • claims(17)
  • construction(15)
  • workers compensation(12)
  • bar and restaurant(11)
  • life insurance(11)
  • agency news(9)
  • cost containment(8)
  • general liability(7)
  • oil and gas(7)
  • payroll and hr(6)
  • roofing(5)
  • bonds(4)
  • personal lines(4)
  • commercial auto(4)
  • job(4)
  • cannabis(3)
  • hail(3)
  • recognition(3)
  • become an agent(3)
  • commercial insurance(2)
  • auto insurance(2)
  • homeowners insurance(2)
  • professional liability(1)
  • hail damage(1)
  • property(1)
  • covid-19(1)
  • alliance team(1)
  • broker of record(1)
  • colorado(1)
  • trucking(1)
  • record hail(1)
  • payroll(1)
  • hail insurance(1)
  • crane(1)
  • winter weather(1)
  • oil & gas(1)
  • motorcycle(1)
  • product liability(1)
  • commercial auto insurance(1)
  • inland marine(1)

View Mobile Version
  • Carrier
  • auto-owners insurance logo
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social
Agency
Alliance Insurance Group
7910 Ralston Rd., Ste 7
Arvada, CO 80002

Phone: (303) 279-9700
Business Insurance
Home/Auto/Life
Health & Benefits
Payroll & HR
Home
About Us
Privacy Policy
Contact Us
Powered by Insurance Website Builder
Alliance Insurance Group Rated 4.8 / 5 based on 5 reviews. | Review Us