CBD Insurance
CBD is a product that offers business owners many avenues in which to build a successful enterprise. Still, as with any business, insurance is an integral part of its success or failure. This is why CBD Insurance is essential if you work within the cannabidiol space. 
What Does CBD Insurance Cover?
Given many of the misunderstandings of CBD, most well-known insurance companies avoid providing coverage for businesses working with CBD or related products.
This is why it is important to work with an insurance professional with access to an insurance company familiar with CBD, hemp, and cannabis products.
CBD Insurance can have separate policies and added to as your business grows. Though coverage varies between carriers and specific policies, the following are the more common types of coverage a CBD business may need:
- Product Liability Coverage helps cover the costs for injury or damage caused by your CBD products
- Commercial Property Coverage for business property and any buildings owned by the business
- General Liability Insurance (GL) helps cover the costs from a third-party claim that your CBD business caused, or alegedly caused, for bodily injury or property damage.
- Workers Compensation Insurance helps cover job-related injury or illness of employees.
- Commercial Auto helps cover vehicles owned and used in the business
- Excess Liability Insurance helps provide coverage limits above what an underlying policy offers (such as GL insurance.)
- Directors and Officers Insurance helps protect the directors and officers of the CBD business and other business leaders and board members.
What Type of Business Needs CBD Insurance?
If you produce or apply products containing CBD, distribute, sell, transport, re-sell, or lease space to a business in the CBD marketplace, it is strongly recommended that you work with an insurance professional familiar with the industry. This includes:
- Processors
- Wholesale Distributors
- Retailers
- Transporters
- Laboratories
- Non-storefront deliver
- Cultivators and manufacturers
- Lessor's Risk and Building owners
- Ancillary Businesses
What Products Does CBD Product Liability Coverage Commonly Include?
Product liability coverage can vary between different CBD Insurance policies, so you want to be sure the scope of coverage matches your business activity. Below are some examples of what CBD product liability insurance may cover:
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Cosmetic products for hair and lips
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Skincare products, such as topical lotions, creams, gels, and salves
- Oils and tinctures
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Foods, drinks, snacks, and supplements
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Products for pets, such as dog treats
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Vaping liquids
How Much Does CBD Insurance Cost?
CBD Insurance premiums vary depending on what your business is looking to insure. Are you a small start-up in a rented space looking to sell some oils, or do you own a building to house the manufacturing and distribution of your CBD products?
Beyond the size of your operation, other factors that impact the cost of CBD insurance include experience within the trade, licensing, historical sales information, location of the business and its security features, as well as claims history.
This may be intimidating for a small start-up, but we often can provide coverage for such a business with protections and licensing in place.
How Can Businesses Get Insurance for their CBD Business?
It is essential to work with an agent that has access to insurance companies that specialize in CBD products. HPM Insurance has a direct relationship with such carriers and is willing to work with you to find you the coverage you need to succeed. Contact HPM Insurance today!
