Fair Warning: We are experts at CBD product liability insurance. We do not entertain or trade in insurance products for marijuana or any product containing THC. We believe the future for CBD products is bright and we are limiting our focus to insuring products related to CBD,which can include but not be limited to:
we are interested in assisting you with product liability insurance for any product containing CBD as one of the ingredients, or with CBD as the sole ingredient.
There is no typical premium, because each risk is different. So, terms like: “average”, “standard” or “normal” simply don’t apply. Several factors go in to the premium rating process, the most important being your projected sales for the coming twelve months (which mirrors the policy period). There is, however, a concept called the minimum premium, which is the absolute lowest that a carrier will issue a policy for, regardless of your sales projection.
As this is written (Fall 2018), only about five. That’s not many and that reduced competition is bearing high prices. But it is a landscape that is ever-changing, just like the entire CBD landscape currently. We anticipate more carriers entering in the future, but for now, it’s scarce but available.
Most likely not. Most of the dietary supplement insurers are not insuring CBD products right now (hence the scarcity of those that will). And those that aren’t are generally adding CBD to their ingredient exclusion list. If you recently started selling CBD products in addition to your past product line, what does your policy
say about CBD? You might be unpleasantly surprised.
Far from it. Of the five carriers offering coverage now, some of them attach endorsements buried deep in the policy (which you don’t read and your broker is not aware of, so he doesn’t disclose them) that severely limit the coverage, to the extent that you may not have coverage when you think you do. You’ll only find this out only after a claim occurs—the worst possible time. We limit our efforts to those insurance companies that actually give you coverage. And they almost always are NOT the lowest price.
Is there any kind of false advertising liability insurance that would defend a class action against us?
Currently, there is no true false advertising insurance that will protect your company from this kind of litigation. And don’t be fooled by the “Advertising Injury” coverage in your general liability policy. While it might sound as if you have some false advertising coverage there, you don’t.
Product liability policies also provide product recall insurance – don’t they?
No, although the implication is there in the term: “product liability coverage.” Meaningful Product Recall insurance is provided by a separate policy.