Cannabis Products Liability & Product Withdrawal

The Risk

The legal cannabis industry is associated with hazards that may lead to bodily injury and property damage, including risks related to consumption, fire, contamination, and improper labeling or failure to warn. The potential dangers associated with cannabis use, coupled with the rapid financial growth of the industry and lack of established tort law on the subject, have made cannabis businesses increasingly attractive targets for product liability lawsuits seeking millions in monetary damages. Further amplifying the risks faced by operators, product liability lawsuits name and implicate every link in the supply chain, regardless of culpability. This means retailers, distributors, and manufacturers can all find themselves paying expensive legal fees due to a single cultivator’s error.

True Protection

Continental Heritage’s product liability and product withdrawal coverage was created to give operators in the legal cannabis industry peace of mind knowing the future of their business is protected in the event of a costly, burdensome lawsuit. Alarmed by the exclusions and fine print definitions in the product liability policies circulating the legal cannabis market, Continental set out to create “true” products liability coverage that provides real protection specifically for the kinds of suits most likely to be brought against cannabis businesses. We are proud to offer cannabis operators an admitted product that fills the glaring gaps in coverage left by other carriers offering insurance to the industry.

Product Recalls

Many states have implemented formal testing and safety requirements for cannabis products that have resulted in an increase of expensive, government mandated product recalls. The cost of removing non-compliant products from the stream of commerce can devastate current business operations and threaten the future of growth of your investment. In the event of a recall, Continental’s product withdrawal coverage assists business by defraying the costs of removing the product from the marketplace and minimizing the harm to your business.

Coverage Highlights

  • Scheduled Cannabis, Hemp and CBD Products
  • Defense outside of limits
  • Covers injuries stemming from intoxication, impairment, and health risks
  • Includes vapor cartridges
  • Duty to defend

Coverage Options

  • $500,000 Occurrence / $1,000,000 Agggregate
  • $1,000,000 Occurrence / $2,000,000 Aggregate
  • $2,000,000 Occurrence / $2,000,000 Aggregate
  • Deductibles: $5,000; $10,000; $25,000; $50,000; $100,000
  • Product Withdrawal Endorsement Available

Contact us today to request a quote or become a producer.

*Currently available in California and Nevada