How Insurance Can Help Reduce Risks for CBD and Cannabis Distributors
CannGen_How Insurance Can Help Reduce Risks for CBD and Cannabis Distributors
The cannabis industry is growing rapidly. Medical cannabis is legal in 33 states, and recreational marijuana is legal in 11 of those. It takes a lot of product to meet the needs of consumers in that growing market.
Distributors of cannabis and CBD products face several unique risks associated with their work. CBD distributor’s insurance is one of several tools that can help mitigate those risks.
What Types of Coverage Should Distributors Carry?
While each business will have a different set of needs, the two most commonly requested coverages are general liability and product coverage. They offer protection for different situations.
Most businesses know they must carry general liability insurance. Like workers’ compensation, it is a requirement in most jurisdictions. This protects you from claims made against your company and legal fees associated with them.
Distributors may not realize that product coverage is also important. If someone files a claim for injuries resulting from the use of a product, everyone involved with the manufacture and distribution of that product will often be listed in the suit. This is where your product coverage can help.
Why Choose Cannabis-Specific Insurance?
Rules, requirements and restrictions in the cannabis industry are changing rapidly. An industry expert will be able to help you determine the right coverage to ensure you comply with any changes that might impact your operations.