Product Liability Insurance
Product liability covers claims that a product you cultivated, manufactured, or sold harmed a consumer — contamination, mislabeling, potency or pesticide issues, and adverse reactions.
Product Liability for Cannabis & CBD
Every business in the cannabis supply chain that touches a product — cultivators, extractors, edible and beverage manufacturers, and dispensaries that sell — carries product liability exposure. If a consumer claims your flower, vape, edible, tincture, or topical made them sick or caused injury, product liability responds to the defense and any settlement.
Real-World Cannabis Product Claims
- Contamination: Mold, mildew, heavy metals, residual solvents, or salmonella
- Pesticide residue: Banned or excessive pesticides found in tested product
- Mislabeling: Inaccurate THC/CBD potency, missing allergen or dosage warnings
- Adverse reactions: Claims of overconsumption from edibles or high-potency concentrates
- Foreign objects: Physical contaminants in packaged goods
Why the Broker Angle Matters
Cannabis product liability is written almost exclusively in the surplus-lines market, and terms vary widely between carriers — some exclude vape hardware, some sub-limit edibles, some require specific lab-testing protocols. As your broker, we compare carrier forms side by side so you don't discover a gap after a recall.
Product Recall Considerations
A statewide recall can be financially devastating. We can pair product liability with product recall / contaminated product coverage to help with the cost of pulling, destroying, and replacing affected inventory and notifying regulators and customers.
What's Covered
Frequently Asked Questions
Yes. Retailers are part of the chain of distribution and can be named in a product claim even when they only sold the item. Many license rules and vendor contracts require it.
They carry higher scrutiny. Some carriers exclude vape hardware or sub-limit edibles. We shop carriers that will cover your specific product mix on the broadest available terms.