The cannabis industry is growing. Whether it is for CBD or medical or recreational marijuana products, people are increasingly turning to the benefits offered by cannabis products. If you are a manufacturer, that can mean increased liability.
Common Cannabis Product Liability Claims
Research into cannabis product risk management shows that there are three main types of claims you may face. These include:
- Third-party claims can occur when someone uses your products and then cause an injury or property damage
- First-party claims are when someone is directly injured as a result of using your products
- Contamination claims result when a portion of your product is not safe, or if it does not meet listed ingredients
Ways To Limit Products Liability
No matter how careful you are, there is always a degree of liability in running a business. You can take steps to lower it, though. Carefully vet any producers or growers you are planning to source ingredients form. Conduct batch testing to ensure your products meet requirements and that ingredients match labels. The right insurance can also help protect your business and its assets in case of a claim made against you. That is why product liability coverage is an absolute must for manufacturers of cannabis products.
Carefully assess your own cannabis product risk management practices to help improve your company’s safety record. Carry the correct product liability insurance to reduce its liability.