Product Liability Insurance

If one of my cannabis-infused edibles causes a customer to get sick, will product liability insurance cover the resulting lawsuit?

If you have cannabis product liability insurance, yes, it should cover legal defense costs, settlements, and any court-awarded damages, provided the claim falls within your policy limits and scope. Be sure to review how the policy defines “bodily injury” and what exclusions apply to ingredients, dosing, or spoilage.

Do I need product liability insurance if I don’t manufacture cannabis products but I sell them under my brand?

Absolutely. You’re considered just as liable as the manufacturer in most jurisdictions if your name is on the packaging. Dispensaries with private-labeled or white-labeled products are especially at risk and should carry product liability coverage regardless of production involvement.

How do insurers verify my cannabis products meet safety standards before issuing a product liability policy?

Insurers typically conduct underwriting evaluations that may include reviewing your compliance records, lab testing protocols, packaging/labeling processes, and recall procedures. Some may even require proof of state-mandated third-party lab results.

Will this insurance protect me during a voluntary or mandatory product recall?

Not necessarily. Many product liability policies exclude recall-related costs unless you purchase a separate product recall insurance rider. If recall protection is important to your business, ask the provider about adding specialized recall coverage to your policy.