CBD Product Liability Insurance can protect your business! The booming CBD business has seen hundreds of new CBD products hit the market in 2018 alone. The industry has boomed since states passed legislation on the legalization of CBD products. These products may need to be sold in retail markets, pharmacies, and online stores in order to reach their full sales potential. To be properly protected from claims and lawsuits, CBD-based companies should consider getting a CBD Product Liability Insurance policy. This is the best way to protect their CBD products. However, the best way to do so is with a CBD Product Liability Insurance policy.
Castle Rock Capacity Insurance Agency Currently offers Product Liability Insurance for the CBD industry including coverage for:
CBD Vape Liquids | CBD Lip Balms & Cosmetics |
Is Product Liability Insurance for CBD Products Difficult to Obtain?
Not for us. Product Liability Insurance for many products are simple, however the CBD & Hemp insurance market is much smaller. Likewise, many insurance carriers will not 
entertain Product Insurance for cannabinoids. Our long list of insurers gives us access to Product Liability Markets that many other brokers do not have.
Insuring your Cosmetic Products Insurance through us offers you optional benefits such as:
- Product Liability Coverage for existing businesses. Even new and start-up businesses.
- Coverage for oils, concentrates, skin salves, food products, topicals, and more.
- Retail, Distribution, and Manufacturing facility Premises Liability
- Primary insurance limits are available up to $5,000,000, with excess limits up to $20,000,000
- Blanket Vendors Additional Insured Endorsements can be added and included.
- A Waiver of Subrogation Endorsement and Primary & Non-Contributory Coverage Endorsements
- Hired and Non-Owned Auto Insurance
- Employment Practices Liability Insurance.
- Damage to Rented Premises Insurance.
- Product recall expense coverages
With Sales under $150,000 – General Liability Insurance Premiums may be as low as $1,000.00.
With sales under $1,000,000 Product Liability Insurance Premiums for Hemp Based CBD Products start as low as $2,000.
Insurance premiums start at about $2,000for Hemp & CBD based Cosmetics & Skincare products,click here for more info.
Who Should Have CBD Product Liability Insurance?
Any company or person in charge of the design, manufacture, sale, or distribution of a component or end-user product should have insurance. This includes those who manufacture their own product, even if it is subcontracted to another operation. Even if the operation is in another country. You are still liable if your operation does not technically produce the product but directly imports it, designs it, or puts your name on it. Keep in mind that even if your operation is not technically manufacturing the product, you are liable if you directly import it. If you designed the product, you are liable; and if your name is on the product, you are liable.
What is the average cost of CBD, Hemp, or Cannabinoid Product insurance?
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, premium costs start about $2,000 per year for topical CBD products; and even under $2,500 a year for ingestible CBD products.
Several factors come into play with regards to rating, such as the nature of the product, the annual sales volume, your sales stream, and the origin of the product. Also, your sales volume and insurance coverage also come into play. In the same way asking the average cost of a CBD 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 CBD Product Liability Insurance Cost?
Cannabinoid product liability insurance costs are similar to other liability insurance products. Premiums are based on the specific type of product you manufacture, retail, or market. Some products pose very little potential to cause harm or damage and therefore have lower premiums. Others have a higher propensity to be risky and therefore carry higher premiums. An entry-level policy for a CBD product business can be as low as a few thousand dollars per year.
How is a CBD Product Liability Insurance Policy Rated?
A Product Liability Insurance Policy for CBD Companies 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 product you are insuring and vast is the product line.
- How many of your products will be distributed into the market. Or have been discontinued.
- Who will be using them and what are they used for?
- How long are they intended to last.
- Who formulated and designed them.
- What are the ingredients.
- Where are they manufactured.
- Who is manufacturing your product and who designed them?
- How clearly defined are the instructions, directions, guarantees and warranties.
- What claims do you, the manufacturer or distributor make about the product? Either in writing, or demonstrated in the media.
How much CBD Product Liability Insurance do I need for my CBD Company?
When you are shopping for product liability insurance limits, key factors to consider include how much coverage your vendors require and what you stand to lose if sued. Claims or allegations against you can be severe and frequent, so it is recommended to discuss your insurance requirements with vendors or an attorney before making any decisions. The amount of coverage you may need can vary and may depending on your retailer’s requirements.
In addition to product liability insurance for CBD companies, we also offer other coverages such as, Property Insurance, Directors & Officers, Workers Compensation, Inland Marine as well as a full suite of additional insurances.
See why we are rated #1 in the country byBig Commerce and Marijuana Business Daily.
Because your company’s offerings and operations are different from others, underwriting a products liability insurance policy for your product is complicated. If you need a quote for CBD / Hemp Product Liability Insurance Coverage, please complete a product liability quote request . Castle Rock Capacity Insurance Agency currently offers Product Liability Insurance Policy Coverage nationwide. Including but not limited to New York, NY. New Jersey, NJ. California, CA. Massachusetts, MA. Illinois, IL. Florida, FL. Connecticut, CT. Texas, TX. South Carolina, SC. Vermont, VT. Georgia, GA. Colorado, CO. New Mexico, NM. Oregon, OR. Washington, WA. Arizona, AZ. North Carolina, NC. Virginia, Nevada, NV. Colorado, CO. Oklahoma, OK, and Pennsylvania, PA in addition to all other states.