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The majority of cannabis product liability insurance companies now require their applicants to test their product. This means your cannabis product has been tested at an independent lab or possibly in-house depending on the insurance carrier. If you don’t test your product, the insurance carrier will decline your insurance request.
This mandate comes as demand for product liability insurance continues to increase as cannabis licensees are discovering what they have a risk. While testing has become a standard business practice for most cannabis licensees, a small percentage of licensees don’t test.
Primarily through their application. Below is an example of the question being asked from potential insurance applicants:
You should note, the application becomes part of the insurance policy and those answers you provide are relied upon before issuing an insurance policy. Consequently, truthful and accurate answers are important.
This depends on the insurance carrier. But, most of them are reasonable with their requirements. Discussing these issues with a professional insurance broker or attorney licensed in your state will help with responding correctly and appropriately.
DISCLAIMER: Material presented by Owner website is intended for information purposes exclusively. It is not meant for professional insurance or legal advice, to induce or solicit new clients, and shall not be construed as such. Each individual situation is unique and requires a licensed insurance broker or attorney in your state to evaluate and recommend insurance or provide legal advise respectively. Each insurance company, policy, and broker are unique with their terms,conditions, and product offerings placing the responsibility of the user to conduct and rely on their own due diligence.