Product Liability

Product Liability Insurance for the Botanical, Natural and Supplement Industry

What is Product Liability Insurance?

Product liability insurance is essential coverage for your business in case your product causes harm or injury due to defects. This insurance covers you even if an allegation is made, regardless of whether you are found liable. In large-scale operations, defects can be inevitable, making this coverage crucial.

Should your product cause unexpected side effects or illness, cannabis product liability insurance will cover the associated costs. It also provides protection if a consumer claims an accident occurred while using your product. This type of insurance is particularly important and is sometimes mandated to conduct business with specific vendors and stores.

Liability can extend to sellers, distributors, and manufacturers of a defective product if a third party is harmed. Strict liability means that every part of the supply chain—including processors, cultivators, and dispensaries—faces potential risk.

What is Included in Product Liability Insurance?

Product liability insurance offers protection in several critical areas:

• Lawsuits: Covers legal defense and settlement costs.
• Product Recalls: Provides financial support for recalling defective products.
• Bodily Harm or Illness: Covers third-party injuries or illnesses caused by your product.

Despite being a newer form of coverage in the cannabis industry, product liability insurance has become increasingly necessary. With new regulations, guidelines, and an increasing number of cases involving defective cannabis products, having this insurance is highly advisable.

As the industry grows, the frequency of lawsuits is expected to rise. State-specific regulations, in the absence of federal oversight, leave cannabis businesses particularly vulnerable to legal action.

Benefits of Cannabis Product Liability Insurance

Cannabis product liability insurance offers several key benefits, including:

• Protection Against Design Defects: Despite rigorous testing, design flaws can still occur after production. This insurance provides coverage for such issues.
• Coverage for Manufacturing Errors: Errors during production can often go unnoticed until products reach consumers. This coverage protects against these hidden defects.
• Response for Packaging and Warning Issues: Inadequate instructions or warnings on packaging can lead to lawsuits. This insurance covers claims arising from insufficient labeling.

Tips for Choosing Cannabis Product Liability Insurance

Reduce Business Risk: Even with stringent safety measures, mistakes can happen. Improving safety practices—such as enhanced employee training and better production methods—can help lower your insurance premiums over time.

Ensure Adequate Coverage: While it might be tempting to opt for the cheapest policy, this can leave you underinsured. Focus on selecting a policy that fully covers your business risks, even if it costs more upfront. This approach can save you from significant out-of-pocket expenses later.

Comprehensive Risk Coverage: Make sure your policy covers all potential risks. Be aware of any exclusions and thoroughly read your policy to avoid surprises when filing a claim.

Find a Qualified Broker: Work with a broker who has experience in the cannabis industry and product liability insurance. They can provide tailored coverage and guide you through the application process efficiently.

Get a Quote for Cannabis Product Liability Insurance

Share details about your cannabis business so we can create a product liability insurance quote that meets your needs.

Get a Quote

For more information and to request a quote, please contact us at info@daveh61.sg-host.com.

Why Choose Bozzuto Group for Your Cannabis Product Liability Insurance?

Bozzuto Group has extensive expertise in the cannabis industry and offers customized insurance solutions that ensure comprehensive protection for your business. Our dedicated team is committed to providing exceptional service and support, helping you navigate the complexities of cannabis product liability insurance with confidence.