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Insuring Cannabis Edibles

How to Mitigate the Risk of Insuring Cannabis Edibles

As the cannabis industry gets more and more examined in the wake of increased legality, new risks are coming to light. Different states regulate traditional cannabis products and supply chains differently, but the wide range of edible cannabis products is a new concern. 

Why do your clients need excess products liability coverage if they offer edible products?

The market is too new to take the risk of low coverage

Even once a sale is complete, your client can be held liable for injury or damage their customers cause under the influence of their product. Your client can only do so much to advise their customers and minimize the potential negative effects, and the risk of an extended legal battle is high until time and precedents establish a clearer line between seller and customer responsibility.

Product liability, especially because edibles have a wider range of psychological effect, is one of the greatest risks cannabis businesses face

Product liability coverage is one of the most important areas of coverage because any claims can examine anything from how the cannabis was produced to how your client advertised the products. The legal action can take years to finalize and, depending on the physical damage or injuries behind the claim, the impact of even partial responsibility can be ruinous to a company without sufficient coverage.


Edible cannabis products are more easily advertised to customers new to the cannabis market, and that makes them even riskier for both businesses and safety. Make sure your clients have the extra coverage they need with Prime Insurance Company.

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