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Professional liability insurance is a type of liability coverage for those in the cannabis industry that typically provide advice to others. Examples of when this type of coverage may be needed include professionals such as pharmacists, consultants or medical doctors who are giving advice to patients or others.
The need to buy this type of insurance could be the result of contractual requirements, protecting company assets, or high degree of concern by the consultant of being sued.
The cannabis professional liability policy is offered through a limited number of insurance carriers with coverage amounts that typically start at $1,000,000 of coverage. The insurance policy is most likely offered on a “claims made basis.” A complicated insurance term, but essentially means a policy must be active within a particular time period for indemnification for a claim to be covered. The reasons insurance carriers structure the insurance policy in this format could be the difficulty of predicting claims in the future.
In order to protect your company from a professional liability lawsuit using insurance, the purchase of a separate policy is typically required. If you currently have a commercial general liability policy that policy does not provide coverage for professional activities.
The following are important factors to consider when purchasing this type of coverage:
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.