The Cannabis business is a booming industry. With more states passing legislation on the legalization of marijuana products, in 2018 alone hundreds of new Cannabis and THC 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. In order to do so or be properly protected from claims and suits cannabis based companies need to have their marijuana and THC based products protected with a Product Liability Insurance policy.
Castle Rock Capacity Insurance Agency Currently offers Product Liability Insurance for the Cannabis industry including coverage for:
THC Lip Balms
Is Product Liability Insurance for Cannibis Products Difficult to Obtain?
Not for us. Product Liability for several products are simple to obtain, however the Cannabis and THC insurance market is much smaller and many insurance carriers will not entertain Product Insurance that 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 Cannabis Products Insurance through us offers you optional benefits such as:
- Product Liability Coverage for new and start-up businesses
- Product Liability 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 $20,000,000
- 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
For Hemp & CBD based Cosmetics & Skincare products,
Insurance costs start UNDER $3,000. click here for more info.
Who Should Have Products 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 insurance for THC, Cannabis & marijuana Products?
Although we are typically asked this question, there is typically no “out of the box” price for the cost of insurance for a CBD products, so terms like typical, average, customary, standard, normal do not have any bearing. However, for THC, Cannabis & marijuana Coverage costs can start under $5,000 per year. 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 Products Liability Insurance Cost for a cannabis product?
Products liability insurance costs for Cannabinoids 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 is a Products Liability Insurance Policy Rated for cannabis Companies?
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 do I need for my Cannabis Company?
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.