As a newly regulated and legalized industry, CBD manufacturers are often at a loss when it comes to predicting their liabilities beyond general coverage and the protections they need for their workers. That’s due in part to the emerging state of research about the applications of CBD and partially to its shifting position in the food and drug landscape. Working in this sector means finding an insurer who comprehends CBD manufacturing risk, including the risk of being accused of false advertising or medical malpractice.
Coverage Against Common Suits
Since many claims about CBD are based on the current best research, some of them do wind up being adjusted or even debunked over time. This can open manufacturers who relied on them as sales point to litigation on false advertising grounds, whether they acted in good faith or not. Coverage against this kind of issue means more than just having insurance money to pay out a settlement, it means having help with the cost of fighting unjust suits and maintaining your reputation. Similarly, if there are side effects discovered down the road as research emerges, manufacturers could potentially face exposure, based on when they become aware of the information and how they respond. The right coverage helps you protect yourself there, too. Working with a company that understands the industry is the key to getting the right coverage for your CBD company in situations like these, so make sure you work with an insurer who makes cannabis their business.