Product Liability Insurance

As the cannabis industry continues to grow, it is essential for cannabis organizations to prioritize the safety and well-being of their customers above all else.

Request a Quote

Grow Your Business With Confidence

cannabis dispensary store with dimmed lights

Our Trusted Carriers

Quality Assurance For Your Cannabis Products

Why Do You Need Cannabis Product Liability Insurance?

Cannabis product liability insurance safeguards against unforeseen risks. It covers claims stemming from property damage, personal injury, or health hazards linked to your cannabis products.

With a product liability policy, you can confidently navigate the evolving cannabis industry, knowing that you have the right protection in place. Explore our range of insurance solutions today and safeguard your business against unforeseen challenges.

Apply Now

Cannabis Product Liability Insurance Coverage Options

In the event that a customer claims injury or harm resulting from the use of your cannabis products, you could face a costly lawsuit. Cannabis product liability insurance provides coverage for legal defense costs, settlements, or judgments, ensuring that your business is protected financially.

Even with rigorous quality control measures in place, product defects can still occur. Whether it’s a manufacturing error, contamination, or labeling issues, these defects can lead to harm or dissatisfaction among your customers. Product liability insurance covers the financial costs associated with claims arising from product defects.

A product recall can have significant financial implications for your cannabis business. In the event of a recall due to product defects or safety concerns, product liability insurance can help cover the costs of the recall process, including notification expenses, product disposal, and potential business interruption.

In the highly competitive cannabis industry, your reputation is paramount. Any negative incidents related to your products can damage your brand image and customer trust. By having cannabis product liability insurance in place, you demonstrate your commitment to customer safety and reinforce your reputation as a responsible and reliable cannabis business.

Tailored Cannabis Product Liability Insurance Solutions

At MFE Insurance, we specialize in providing insurance solutions for the cannabis industry. Our experienced team will work closely with you to understand the nature of your particular cannabis products, manufacturing processes, distribution channels, and customer base.

We will tailor a cannabis product liability Insurance policy that meets your specific needs, ensuring comprehensive coverage and risk mitigation.

Get a Quote

Build Trust, Minimize Liability

budtender in a cannabis store with dimmed lights

Need-To-Know Info About Cannabis Product Liability Insurance

FAQs

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.

Featured Blogs

DICE/Annual Film Production Insurance

Film Production Team Working on Set with Their Equipment

DICE vs. Production Insurance: What’s the Difference?

Choosing between DICE and Production Insurance? Compare coverage for annual vs. single projects to find the best fit for your film production.

DICE Insurance

Stuntman Performing in Front of Cameras During Film Shooting

How DICE Insurance Protects Stunt Coordinators and Their Crew

Discover how DICE insurance safeguards stunt coordinators and their crew with specialized coverage for on-set risks, injuries, and liability.

Cannabis Insurance

Edibles and Extracts Displayed in A Cannabis Dispensary

Product Liability Insurance for Edibles & Extracts

Dispensaries that sell products such as edibles and extracts, whether produced in-house or sourced, are especially susceptible to liability claims.

Speak to one of our cannabis insurance brokers to start protecting against costly liabilities.

Request a Consultation