THC Impairment Liability Insurance
THC Impairment Liability Insurance provides protection for operations serving THC to consumers. If you serve THC you need THC Impairment Liability Insurance. Similar to liquor liability insurance for bars, restaurants and taverns, THC Impairment Liability Insurance covers claims that may arise from the serving, or overserving of THC to patrons. To be properly insured from claims and suits, cannabis based companies need insurance. To be covered for serving cannabis and THC based products you need a THC Impairment Liability Insurance policy.
What issues do I need to look out for when trying to obtain Impairment Liability Insurance?
Many operations that have served alcohol in the past and that are insured with a liquor liability understand the importance of it. However, unlike liquor, THC impairment is excluded from liquor liability coverages. When THC became legalized in U.S. States, many if not all policies that provide liquor liability insurance began manuscripting endorsements that exclude intoxication from serving THC and cannabis. This applies operations that are licensed to serve THC derived from cannabis, as well as THC derived from hemp in the 2018 Farm Bill. If you are serving cannabis derived THC products you are required to maintain the proper license to so.
If you are selling, or serving THC infused, hemp derived products your state may require you to be licensed to do so. The ISO liquor liability policy form, the CG0033 is triggered by “selling, serving or furnishing of any alcoholic beverage.” Typical liquor liability insurance policies don’t specifically exclude cannabis; however, the insuring policy would not apply to THC or cannabis. The ISO liquor liability policy form, the CG0033 is triggered by “selling, serving or furnishing of any alcoholic beverage.” Therefore, serving a THC infused beverage that causes a cannabis intoxication would not trigger claim coverage.
If you retail THC products and have a product liability insurance policy that provides coverage for the products you sell, it is more than likely that impairment from the service and use of those products are excluded.
We currently offer THC Impairment Liability Insurance for:
- Restaurants serving THC infused cocktails or RTD Beverages
- Bars, Taverns, Gentlemen’s Clubs, and Nightclubs
- Sports Stadiums, Event Venues, Banquet Halls, and Concert Halls
- Casinos
- “Budtender” Services, Event Server Staffing Agencies, and Catering Services
- Gas Stations, Grocery Stores, and Convenience Stores
- Wineries, Breweries, Distilleries, and Dispensaries
Is THC Impairment Liability Insurance Difficult to Obtain?
Not for us. THC Impairment Liability is similar to liquor liability, however it addresses the serving and use of cannabis products, and not alcohol. Clearly, if the products you are serving require licensing, then you will be required to maintain a valid license to do so.
Securing your THC Impairment Liability Insurance through us offers you optional benefits such as:
- Insurance for new and start-up businesses.
- Coverage for medicinal as well as recreational cannabis.
- Impairment coverage for psilocybin mushrooms, if you meet the requirements.
in addition to THC Impairment Liability Insurance, we can also provide
- Premises Liability for your Service, Retail, Distribution, or Manufacturing facility.
- Property Insurance
- Product Liability Insurance
- Liquor Liability
- Hired & Non-Owned Auto Insurance.
- Workers Compensation
- Employment Practices Liability Insurance.
- Damage to Rented Premises Insurance.
- Product Recall expense coverages.
Property InsuranceWhat Operations Should Have Impairment Liability Insurance?
Your business should have Impairment liability insurance if it is serving impairing products to the public. 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 THC Impairment Liability Insurance?
Although we are typically asked this question, there is typically no “out of the box” price for the cost of insurance for a THC Impairment Liability Insurance. So, terms like typical, average, customary, standard, or normal premiums do not have any bearing. However, like all other types of insurance THC Impairment Liability Insurance is based on several factors, such as; the nature of the products, the nature of your operation, the annual sales volume, employee training and safeguards.
What Does Product Liability Insurance for THC Impairment Liability Insurance cover?
While your general liability may provide coverage for bodily injury or property damage that may arise as a result of your business operations, is most likely excludes injury or damage that can arise from the mis-serving, or overserving of intoxicating products that lead to injury or damage. THC Impairment Liability Insurance is designed to provide coverage in the event that your operation is sued because it failed to use proper judgement in the serving of these products, that lead to injury or damage. The difference being, that the injury was caused by bad judgement, not injury from the product itself.
How are Impairment Liability Insurance costs derived?
An impairment Insurance Policy is rated on several factors.
- The nature of your operation, be it a bar, restaurant, dispensary, retail, budtender…
- What products are you serving?
- Staff training protocol.
- Identification checking practices.
- Prior claims history
- Coverage limits requested
- Entertainment presence in the environment
How much THC Impairment Liability Insurance should I have?
The amount of coverage required can vary, important factors to consider when shopping a THC Impairment Liability insurance limits are: How much coverage does my landlord require me to have? If you are providing outside services; what limits does the host require? What do I stand to lose if our company is sued? You may want to discuss your insurance requirements with vendors or an attorney before making any decisions.
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