(This is an abridged version of a story that appears in the March issue of Marijuana Business Magazine.)
CBD manufacturers risk paying thousands of dollars in legal expenses if they lack insurance to deal with rash-inducing topicals, exploding vape pens and other problems connected to their products.
Product liability insurance is especially important for CBD companies hoping to stock their products on the shelves of major retailers. Many big-box stores require at least some coverage as part of their retailer agreements, experts said.
In simple terms, a product liability policy essentially covers bodily injury and property damage that happens as a result of the use of your product, said Brett Lipton, vice president of Castle Rock Capacity Insurance Agency.
“My contention is, if you’re putting a product in the public’s hands, then you really should have product liability insurance, regardless of what the product is,” Lipton said
To read more about liability coverage in the hemp industry, click here.
