Product Liability Insurance for Delta 8 THC
Product Liability Insurance for Delta 8 THC Products as well as Delta 10 and D-O. With more states passing legislation we can provide insurance for your Delta 8 THC products as well as those with Delta 10 and D-O. In 2018 alone hundreds of new hemp based products have come to market. For these to reach their full sales potential, many need to appear in retail markets, pharmacies, and be added to web stores.
To be properly insured from claims and suits, cannabis based companies need insurance. To have your marijuana and THC based products protected you need Product Liability Insurance policy. And yes, Delta 8 THC is considered THC in the insurance sector.
What issues so I need to look out for when trying to obtain Product Liability Insurance for Delta 8 THC Products?
What most people in the hemp industry do not realize is that most insurance policies have a nasty exclusion that stems from the 2018 Farm Bill. When insurers first delved into the hemp market this standard exclusion arose from the original Farm Bill in that in provided coverage for products, providing that the Total THC concentration was less than or equal to 0.3% by weight, regardless of the THC variant, D8, D9, D10, or D-O.
The problem being is that many Delta 8 tinctures, gummies, oils, e-liquids, and vape carts have well over 0.3% Delta 8. In fact a 3 gram gummy with 25 mg of Delta 8 has almost 3 times the permissible 0.3%, and a 3 gram gummy with 50 mg has a THC concentration of over 1.5%. We can provide coverage that specifically states that the Delta 9 THC concentration must be 0.3% or less, regardless of what the concentration is for the other variants.
Product Liability Insurance for Delta 8 THC can be secured through Castle Rock Capacity
We currently offer Product Liability Insurance for the Delta 8 THC industry including coverage for:
Delta 8 THC Based CBD Foods, Snacks & Gummies | Topical Gels, Creams, Lotions, & Salves with Delta 8 THC |
If you are seeking product liability insurance for Marijuana, cannabis or Delta 9 THC products click here.
Is Product Liability Insurance for Delta 8 THC Difficult to Obtain?
Not for us. Product Liability for several products are simple to obtain, however the Delta 8 THC insurance market is much smaller and many insurance carriers will not 
entertain Product Insurance for cannabinoids. However our long list of carriers gives us access to Product Liability Markets many other brokers do not have access to.
Insuring your Delta 8 Products Insurance through us offers you optional benefits such as:
- Product Liability Coverage for new and start-up businesses.
- Product Insurance Coverage for oils, concentrates, skin salves, food products, and more.
- Premises Liability for your Retail, Distribution, and Manufacturing facility.
- Primary insurance limits are available up to $5,000,000, with excess limits up to $10,000,000.
- Blanket Vendors Additional Insured Endorsement Included.
- Waiver of Subrogation Endorsement Available.
- Primary & Non-Contributory Endorsement Available.
- Hired & Non-Owned Auto Insurance.
- Employment Practices Liability Insurance.
- Damage to Rented Premises Insurance.
- Options available for product recall expense coverages.
What Delta 8 THC Operations Should Have Product Liability Insurance?
Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product or even if the product’s manufacturing is subcontracted out buy another operation, even if the operation is overseas. Keep in mind that
in the event that your operation is not technically manufacturing the product, if you directly import the product, you are liable for it; if you designed the product, you are liable for it; if your name is on the product, you are liable for it. We currently provide coverage for both recreational and medical cannabis.
What is the average cost of Product Liability Insurance for Delta 8 THC?
Although we are typically asked this question, there is typically no “out of the box” price for the cost of insurance for a Delta 8 THC products, so terms like typical, average, customary, standard, normal do not have any bearing. However, for the Delta 8 THC Industry several factors come into play with regards to rating, such as; the nature of the product, the annual sales volume, your sales stream, the origin of the product.
Also, your sales volume and limit of coverage also come into play. In the same way asking the average cost of a cannabis product means little or nothing when looking at an oil or concentrate, because no 2 products are the same, prices can vary greatly, the same applies to insurance, and the company purchasing it.
So… What Does Product Liability Insurance for Delta 8 THC products?
Products liability insurance costs for Delta 8 THC Products are much like any other liability insurance product. There no real average rate because they are based on the specific type of product you manufacture, retail or market. There are some products that pose very little potential to cause harm or damage and there are others that have a higher propensity to be risky, and therefore carry higher premiums. We can tell you this, an entry level policy for a cannabis can be as low as a few thousand dollars a year.
How are ratings for Product Liability Insurance for Delta 8 THC based?
A Products Liability Insurance Policy is rated on several factors.
- If you are not manufacturing the product, does the manufacturer name you as an additional insured on their policy?
- What is the product you are insuring
- How many of these products will be distributed into the market
- What are they used for and who will be using them
- How long are they intended to last
- Who formulated them
- What are the ingredients
- Where are they manufactured
- Who is manufacturing your product
- How clearly defined are the usage instructions, directions and guarantees and or warranties that are provided with the product
- What claims does the manufacturer or distributor make about the product, either in writing, demonstration or in media.
How much Products Liability Insurance for Delta 8 THC Products should I have?
The amount of coverage required can vary, important factors to consider when shopping product liability insurance limits are: How much coverage do my vendors require me to have to stock my product? What do I stand to lose if our company is sued? Because claims or allegations against cosmetic manufacturers can be severe or even more likely… FREQUENT, you may want to discuss your insurance requirements with vendors or an attorney before making any decisions.
See why we are rated #1 in the country byBig CommerceandMarijuana Business Daily.