Get a quote


Join Our Distribution List Today!

Need help managing your business risks during COVID-19? – CLICK HERE FOR INFO YOU CAN USE
ALIGNED Insurance

Call Toll Free

Cannabis Product Contamination Insurance

Cannabis Product Contamination Insurance
ALIGNED - CLICK HERE to get a FREE insurance quote now - Header - June 2021
Want insurance? Click HERE to get a FREE QUOTE!

Flower, edibles, oils, topicals, beverages, vapes, and extracts. The Cannabis industry products have come a long way in a relatively short period of time. If you’re a cannabis business owner involved in the cultivation, manufacturing, or sale of cannabis products, it’s important to protect yourself from the risk of loss and liability that, unfortunately, is a part of such a highly scrutinized and regulated industry.

What is Cannabis Product Contamination Insurance?

Cannabis Product Contamination Insurance
Looking for Cannabis Product Contamination Insurance in Canada? Contact us HERE to get an online quote now!

Cannabis product contamination insurance is a specialized form of Product Recall Insurance. Product recall insurance is typically available as additional coverage in addition to a Commercial General Liability Insurance (CGL) policy which is more concerned with the liability risks of the day-to-day operations of a business.

This cannabis insurance coverage is specifically designed to address the risks that contamination poses for cannabis cultivators, harvesters, processors, manufacturers, distributors, retailers, cannabis industry product brands, and others who face losses due to contamination and recall.

Some of the losses that a cannabis product contamination insurance policy can cover include:

  • Pre-recall expenses like cannabis operations for product testing and the hiring of consultants.
  • Recall expenses such as pulling products off shelves, public safety announcements, disposal costs, third-party losses & liability, and extra wages that result from a recall.
  • Replacement costs including labor, materials, distribution costs, and other expenses incurred to replace recalled cannabis products.
  • Profits lost that would have been earned on the recalled and wasted product.
  • Brand rehabilitation expenses like PR costs, marketing, promotions, and other costs needed to restore your company’s image.

Situations that cannabis product contamination insurance can protect you from include:

  • Accidental and intentional/malicious contamination
  • Government imposed recalls and shutdowns
  • Publicized allegations of the above 
  • Product extortion i.e. ransom demands based on the threat of intentional contamination of your cannabis production

Is Cannabis Product Contamination Insurance Enough?

Another coverage that goes hand-in-hand with cannabis product contamination insurance is Product Liability Coverage. Also an optional extension of a CGL policy, cannabis Product Liability Insurance coverage can protect your company if consumers are harmed by contaminated cannabis products that contamination insurance alone can’t cover you for.

Even if you are not involved in the cultivation of cannabis, harvesting, processing, or manufacturing of cannabis products, if you sell contaminated cannabis products, you may not be fully protected in a lawsuit.

Product liability insurance can provide cover for:

  • Medical expenses for injuries to consumers, lost wages, and other liability costs
  • Lawyer’s fees and defense costs
  • Out-of-court settlements 
  • Awards for damages

It’s important to keep in mind that even if you’re ultimately cleared of liability, being named in a lawsuit alone triggers a cascade of expenses, stress, and inconveniences.

Related Articles

Get ALIGNED with Cannabis Product Contamination Insurance that protects your business.

We’re specialists who only deal in insurance for businesses. Contact an ALIGNED advocate to get a free quote on cannabis product contamination insurance in minutes or get started right away by using our free online tool.

It’s time to get insurance value and choice aligned. Want Canadian business insurance that aligns with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448 or click to Get a Quote!

We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. Our industry peers consistently recognize us as one of Canada’s best insurance teams. 100% Canadian-owned, we are super proud to be one of the fastest-growing insurance brokerages in the country.

We deliver e-news you can use. Get practical business insurance insights in your inbox every month. 19,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to get connected.

365 | Get ALIGNED. Every day, Canadian business leaders read our insurance insights. Find us on LinkedIn, TwitterFacebookInstagram and YouTube.

Leave a Reply

Your email address will not be published. Required fields are marked *