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 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.
Delta 8 THC Based CBD Foods, Snacks & Gummies | Topical Gels, Creams, Lotions, & Salves with Delta 8 THC |
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
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
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.
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.
A Products Liability Insurance Policy is rated on several factors.
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 by Big Commerce and Marijuana Business Daily.