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The latest underwriting requirement from a major cannabis product liability insurance carrier has them saying no to cannabis companies that apparently manufacture or distribute foreign vendor products such as vape pens. The majority of the cannabis industry most likely buys vape pens from China. Essentially, the insurance carrier is declining these applications for product liability coverage. The apparent reason is due to the inability by the insurance carrier to collect from these foreign companies, lack of controls, and alleged explosions that cause bodily injury according to our underwriting representative.
Ironically, a FEMA key point study of electronic cigarettes indicates fires or explosions are rare.
A recent decline of an infused products company that purchased vape pens and batteries from a Chinese manufacturer is direct proof the insurance carrier is strongly opposed to these foreign made products.
What this means for the cannabis industry?
Vape pens have been the most significant product development for the cannabis industry over several years. Many retailers, stores, dispensarie...more