Cannabis Product Liability Insurance
What is it?
Frontier Risk's Product Liability Insurance protects cannabis businesses against claims for injuries or damages caused by their products.
Why is it important?
Product Liability Insurance is essential in the cannabis industry due to the lack of federal regulation in testing and manufacturing. With 73% of the 50 million individuals with allergies potentially reacting to marijuana, the risk of adverse reactions is significant. In 2020, product liability verdicts resulted in damages worth nearly $240 million, underscoring the need for comprehensive coverage to protect against costly legal claims.
What does it cover?
Bodily Injury Claims
Protects against claims for bodily injuries resulting from the use or consumption of your products. It covers medical expenses, legal defense costs, and potential settlements or judgments.
Property Damage Claims
Provides coverage for property damage caused by your products, including repairs and replacement costs.
Manufacturing Defects
Covers claims arising from manufacturing defects that render products unsafe or dangerous.
Design Defects
Protects against claims resulting from inherent design flaws that make products unsafe.
Common Questions
Yes, some Product Liability policies offer coverage for recall expenses, helping manage costs associated with product recalls.
Yes, Product Liability covers legal expenses, including defense costs, settlements, and judgments resulting from covered claims.
No, Product Liability is relevant for any business that manufactures, distributes, or sells products, including retailers and wholesalers.