What Are the Insurable CBD Products?

Oct 26, 2022

CBD Insurance

What Are the Insurable CBD Products?

Consumers have become increasingly aware of the benefits of CBD, with the popularity of CBD-infused products soaring by the day. One thing on your mind as a current or prospective business owner in the rapidly-growing sector is the requirement to carry insurance for CBD products. Whether you're a producer, distributor, or dispenser, you must be wondering whether your products are insurable. Keep reading for answers.

CBD Products That Are Insured

Insurance for CBD products can protect you against risks if you deal in or offer the following:

  • CBD oil that people usually consume by dropping in the mouth under or above the tongue
  • CBD capsules and dietary supplements, which may contain pure CBD or an infusion of CBD and vitamins/minerals
  • CBD edibles in various enjoyable forms, from chocolate, gummies, and hard candy to flavored beverages and sports drinks
  • Soap and skincare solutions are available in multiple forms, including lotions, bath bombs, perfumes, facials, and balms (some of these may provide therapeutic benefits for issues such as inflammation, acne, and pain)
  • Vapes/vaporizable CBD oil cartridges (vaping and smoking CBD for leisure and medicinal purposes is rapidly gaining popularity)
  • Pet CBD products (some consumers feed these solutions to their pets for various purposes, including relieving anxiety or stress)

CBD Products That May Be Difficult to Insure

Some carriers or programs may not have insurance for CBD products with the following ingredients or characteristics:

  • Acetone
  • Aerosol
  • Alcohol
  • Talc
  • Prescription products (including drugs/medicines
  • Digestible
  • Formaldehyde
  • Ingestible hemp products
  • Nutritional supplements
  • Household cleaning solutions
  • Invasive body inks
  • Products that are permanently inserted into the body
  • Plug-in electrical devices
  • Suppositories
  • Pharmaceuticals
  • Furniture
  • Tanning equipment/furniture
  • Permanent cosmetics
  • Toys

About CBD Insurance

CBD insurance protects your business against third-party claims that pertain to your everyday cannabinoid-related operations. You’ll often face liabilities that are unique to the type of business you operate. Provided that you’re offering a CBD product, the need to carry proper CBD insurance coverage remains. 

Top 3 Questions to Ask Before Opting for CBD Insurance

Can you provide CBD insurance programs in all states?

Some CBD insurance programs are available nationwide, while others are only in select states or regions. Ask to be sure that you’ll be protected in all your CBD business locations.

What types of coverage do I need most?

Of all insurance policies available for your cannabinoid business, you should start with CBD product liability. This way, you’re covered if somebody sues you for losses/damages arising out of your product. One of the most helpful features of the policy is that it pays for your defense costs and other legal fees as a result of third-party lawsuits against your company. You can even get coverage beyond your policy limit for maximum liability protection.

Can I insure my crop?

Most CBD insurance policies do cover hemp crops. It’s still important to inquire about specific perils included in the coverage (and any exclusions). Also, ask about the total limit available for any one location. Usually, you can purchase crop coverage of up to $5,000,000).

Cover Your CBD Business with Graystone Insurance Group

You should invest in insurance for CBD products because of the inevitability of your risk exposure, whether you’re in the middle or the extreme end of the supply chain. However, most carriers deny coverage to cannabinoid operations because of their unusually high-risk exposure. At GrayStone Insurance Group, we’re different and passionate about providing comprehensive solutions to hard-to-place businesses like yours. Contact us today to get started on your CBD business insurance!