As marijuana and hemp products grow in popularity, more cultivators, dispensaries, and store owners are adding cannabis-infused ingestibles to their product lineup. While ingestibles can be a lucrative investment, selling food items will create additional liabilities for cannabis companies. Here, GreenWrap Insurance Solutions highlights product liability insurance designed to help small businesses sell CBD ingestibles safely, and explains why you might need product liability insurance if you sell ingestibles.

What Is Product Liability Insurance?

While federal, state, and local regulations ensure food businesses operate legally, liability insurance assures they function securely. Product liability insurance offers an annual policy providing general liability coverage as well as coverage for rented premises and personal property.

As a food vendor, you make every effort to protect the health and safety of your workers and customers. But anything can happen. For example, a customer could injure themselves at your establishment or experience an allergic reaction from an ingestible they purchased from you. Simply put, food liability insurance covers exposures your business faces in the food industry. With coverage like product liability, you’ll have peace of mind of knowing your employees and investments are protected.

What Does Product Liability Insurance Cover for Ingestibles in Your State?

Because there are so many different types of food businesses, insurance policies need to be customizable. Complete coverage with product liability insurance can include:

  • General liability: This type of coverage is designed to cover bodily injury and property damage claims that you become legally obligated to pay.
  • Product liability: This type of coverage is designed to respond to bodily injury and property damage claims stemming from the food products you create or sell, such as a food-borne illness or an allergic reaction.
  • Personal and advertising liability: This coverage is designed to respond to advertising-related claims, such as libel, slander, and copyright infringement claims.
  • Damage to premises rented to you: This type of coverage responds to fire-related claims on premises rented to you that you use for seven days or less. For example, if you rented commercial kitchen space and there was a grease fire, the damage would be covered up to a certain dollar amount.
  • Business personal property/inland marine: This covers property you utilize to operate your business.

Each type of coverage has certain limits, and the dollar amounts can vary.

Get More Information About Your Coverage Options

If you sell CBD ingestibles, make sure you and your employees are covered. The FDA has not announced any mandates yet. Product Liability Insurance will only cover your business at the state level – there is no coverage for crossing state lines. The risks are real, but the worry doesn’t have to be. By covering your business with a product liability insurance safety net, you can have financial security against potential claims. GreenWrap Insurance Solutions can help cannabis businesses navigate the regulatory requirements for CBD ingestibles, as well as help them find the best insurance coverage options. For more information about coverage programs, contact us today.

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