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What Could Go Wrong? What Cannabis & Hemp Companies Can Prepare For
As cannabis first became legalized, the rush to get in on the action seemed akin to the 1849 California Gold Rush. Once Congress finally opened up the markets to hemp products, the interest only intensified. However, the industry seems to be coming back down to earth with a number of high-profile lawsuits. Some issues are easy to overlook but could negatively affect business if ignored.
Product Defects
From design to distribution, product purity is vitally important. During the production chain of any product, important factors such as THC percentage are taken into consideration. For example, under federal law, any CBD product must contain no more than 0.03% THC. If a customer reacts negatively to a product marked as “safe,” legal problems from grower to seller could arise.
Misleading Marketing
When a few unscrupulous agencies try to market any product as a “cure all” for every ailment, public opinion of the entire industry is negatively affected. This holds true for the cannabis industry. Until the scientific community is ready to back up the claims of the benefits of CBD oil or cannabis in general, it is wise to err on the side of caution. When referring to the benefits of a product, find scientific studies from accredited institutions to give credence to any claim.
Warranty Issues
Failure to honor a warranty is one sure path to litigation. A product does not have to include an official, printed warranty to fall under the aegis of this rule. Most items sold in any state contain an implied warranty. Every product is expected to work as advertised and designed. If this is not the case—say the item is broken or does not work as advertised—the customer is allowed to seek redress. Be sure to honor all warranties to keep loyal customers.
General Liability
General liability issues are important to every type of business, including the hemp industry. Coverage of safe working conditions, safe shopping conditions, or anything that could cause harm to another person fall under general liability coverage. Protecting a company with this policy is vital in any business that wants security.
Proper Insurance Coverage
Any business that fails to take out the proper insurance runs the risk of financial ruin. Solid insurance coverage not only shields businesses from legal fees and other damages; it forces a company to take proper stock of their products and processes in order to protect their assets. Some insurers offer specialized hemp retailer insurance plans, such as those crafted by CannGen.
These superior coverage plans combine all necessary coverage areas in one bundled policy. For a successful cannabis business, complete coverage is a necessity. CannGen’s coverages include general liability, commercial property, excess and products liability, workers comp, crop insurance, auto liability, physical damage and motor truck cargo. CannGen provides exclusive tailored coverage for every step of the cannabis, CBD and Hemp industry production chain.
About CannGen
For more information about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries, please visit our website at www.canngenins.com or email marketing@canngenins.com.
