As CBD and other cannabis and hemp-based products become more popular, there are a growing number of businesses becoming involved in the industry. While all companies require some form of general liability insurance, CBD, cannabis, and hemp wholesalers should also be aware of additional types of coverage that may be necessary for them.
Like any other product, there is a chain of different contributors involved before merchandise gets into the hands of consumers. In this case, the following entities may be involved:
With Opportunity Comes Risk
While the industry has created a huge opportunity, insurance experts say there are additional liabilities that need to be considered for CBD, cannabis, and hemp wholesalers, as well as for the rest of the network chain. For example, if a customer of a retail store has an issue with the product, even if it is for improper storage by the store, the wholesaler may be named in a lawsuit despite the product being out of wholesaler’s control at that point.
There is no doubt that this is a growing industry, and one that is likely to continue to yield great opportunities for all those involved. However, in order to protect one’s investment, it’s wise to make sure that the business is up-to-date with the most current risks and insurance recommendations.