My company makes and sells CBD and Hemp products online, can we get coverage and what types of insurance might we need?
iCann Insure, LLC replied:
Yes. Of course, this depends on a number of characteristics pertaining specifically to your business that would come into play during the risk evaluation and underwriting processes, but for all intents and purposes, coverage is certainly available for companies in your line of work.
Traditionally, this has been a challenge due to legislation surrounding hemp and CBD. However, December 20, 2018, President Trump signed into law the 2018 Farm Bill, lifting the Schedule 1 classification of CBD and allowing hemp production in all 50 sates. The bill also allows for interstate commerce of hemp-derivded CBD, which previously has been prohibited. Though many producers of such products have chosen to disregard the formerly restrictive laws relating to hemp and CBD, insurance carriers follow the letter of the law. Thus, interstate sales of these products was often a complex issue when it came to procuring proper coverage without restrictive policy language or exclusions. The great news is this is no longer the same issue it has been, making comprehensive coverage for companies, such as yours, much easier to place!
Without a proper discussion about the details of your operations, I cannot accurately assess your individual needs. However, I can certainly tell you what major lines of coverage may be applicable, based on the information you have shared:
General Liability: Every business should carry general liability insurance. This is a type of coverage that protects against both bodily injury and property damage liability claims arising out of premises, operations, as well as advertising and personal injury exposures.
Products Liability: This may be one of the most important coverages for and company that produces or manufactures a product. Products Liability Insurance provides protection from bodily injury or property damage claims resulting from defective products that have been manufactured or sold.
Workers Compensation: Workers Compensation insurance is required by law in many states. This coverage provides compensation to an insured's employees who have been injured at work or who have contracted an occupational disease. Workers compensation is available for all cannabis, hemp and CBD class codes.
Property Insurance: Property insurance protects you, a property owner, for a loss of covered property or loss of income resulting from damage to that covered property. This includes both real property (buildings), as well as business personal property (contents). Inventory and finished goods would fall into this category, as well.
There are, of course, numerous other lines of coverage available: Crop (if you are growing your own hemp), Business Auto and Cargo (if your are involved in transportation), Equipment Breakdown, and a multitude of others, depending on your needs.
Please feel free to reach out to me, directly, with any questions you may have. I am happy to be of assistance and work with you to implement a solution that best suits your company.
President, iCann Insure, LLC
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