How to find insurance for cannabis health products in Canada
Opportunity keeps knocking. The budding cannabis industry in Canada is poised to grow even bigger. In response to public interest, Health Canada is looking at cannabidiol (CBD)-based products and seeking feedback on the introduction of cannabis health products (CHPs) to the marketplace. A recent article by Blakes Business Class outlines what’s happening:
- “Under the current regime, products that contain cannabis and make health claims are considered prescription drugs (subject to prescription drug pre-market authorization requirements) and can only be sold with a prescription from a health-care practitioner.
- Cannabis that is subject to the Cannabis Act and Cannabis Regulations is not currently permitted in over-the-counter drugs or natural health products (NHPs).
- The introduction of CHPs would permit the sale of certain cannabis-based health products, with health claims, to be sold without a prescription. Health claims will likely be limited to minor ailments (relief of headaches, muscle pain, etc.)”1
Whether you are already in the cannabis business or contemplating a new cannabis venture, news about a new category of cannabis-based health products is yet another reason to think about insurance. This article outlines what to be on the outlook for when you’re looking for insurance for cannabis health products in Canada.
Related Matters: Blakes Business Class: Health Canada introduces cannabis health products, a budding category
Considering a cannabis health products start up? Consider risk first.
Like any new or expanded business venture, risk is inevitable. With cannabis health products there are more specific risks that you need to be aware of. The proposed CHP category would be governed by Canada’s Food and Drug Act and also subject to Cannabis Act regulations. Health Canada notes the following elements will be part of a proposed regulatory framework:
- Health claims
- Protecting young persons
- Packaging and labelling2
Related Matters: Insuring a company in the Canadian cannabis industry
Each one of the elements above and others can and do pose risks to any commercial business. And because cannabis is such a new industry in Canada, there are additional risks that you should be aware of.
Risks such as:
- Misinterpreting Canadian cannabis laws and regulations
- Expensive inventory and high exposure to business interruption risks
- Inventory spoilage and high fire potential
- and more…
Related Matters: Canadian Medical Association: Cannabis
Talk to us to get your cannabis health product risks ALIGNED
Our brokers know how to find the best coverage options in the marketplace. To get a quote for insurance a cannabis health products business, you just need to complete a business interruption worksheet as well as a statement of values. A marijuana growers insurance application will be provided if your company grows cannabis. When opportunity knocks, we know how to get the best insurance ALIGNED in Canada.
Related Matters: How much is insurance for licensed cannabis producers in Canada?
Good to know. We’re ready to grow with you.
We have strong relationships with 65+ of Canada’s top insurance companies so we can provide choice and options to all of our clients. ALIGNED insurance brokers understand the specific risks and exposures that companies in the cannabis industry in Canada face. We’re proud to help Canadian cannabis companies get ALIGNED with the best coverage.