CBD Insurance in Massachusetts

What is CBD Insurance?

The emerging CBD industry has created new business opportunities, but with these opportunities come certain risks. CBD insurance can help Massachusetts businesses in this industry shield themselves from a range of risks that they face.

CBD insurance is specialized commercial insurance for businesses that make, wholesale or retail hemp and CBD products. Because this is such a specialized insurance and the industry is relatively new, businesses should seek out an agent who’s familiar with these policies when looking for coverage.

What Massachusetts Businesses is CBD Product Insurance Right For?

Most Massachusetts businesses that operate in the CBD industry ought to carry CBD product insurance. This includes businesses that are involved in the extraction, manufacturing, distribution or sale of hemp and CBD products. Not insuring these businesses can leave them dangerously exposed to substantial risks, and this tends to be the most appropriate type of insurance for these businesses.

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Farms that grow hemp generally also should carry insurance, but their insurance needs tend to be slightly different than businesses that extract, manufacture or sell products. Instead of CBD product insurance, hemp farms should work with a knowledgeable agent to find a policy that better suits their needs. Often, this involves finding a policy that includes crop insurance.

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What Protections Are Available Through CBD Product Insurance?

CBD product insurance normally comes with multiple coverages so that the insurance can protect against a range of risks. The exact combination of risks can vary, but they often include protections such as:

  • Commercial Property Coverage, which may insure buildings, equipment and inventory
  • Premises Liability Coverage, which may insure against common accidents leading to injuries
  • Product Liability Coverage, which may insure against harm that’s caused by hemp and CBD products

Businesses can frequently adjust the specific coverages in their policy to suit their particular needs.

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What Products Can Be Covered by CBD Product Liability Coverage?

The exact products that a particular policy’s CBD product liability coverage extends to are determined by that policy’s terms and conditions. Policies typically cover a variety of hemp and CBD products, though. The following are a few examples of what might be covered:

  • Oils and tinctures
  • Dietary supplements and foods (e.g. snacks, gummies)
  • Drinks (e.g. drink mixes, infused drinks)
  • Cosmetic products (e.g. lip balms, hair care products)
  • Skin care products (e.g. creams, salves, gels, topical lotions)
  • Animal products (e.g. pet treats)
  • Vaping liquids

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Do CBD Businesses Need Workers Compensation?

Most businesses in Massachusetts that have employees are required to carry workers compensation, which is a protection that typically insures against workplace injuries and illnesses. This requirement often extends to CBD businesses.

Workers compensation isn’t always included in CBD policies, however. The coverage might be purchased as part of a CBD product policy, or it may be procured separately through its own policy. In either case, an insurance agent can help businesses secure workers compensation and the coverage is readily available.

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How Are CBD Product Policies’ Premiums Determined?

Underwriters consider a variety of factors when calculating premiums for CBD product policies. The location, operations, past claims and annual sales of a business are only some of the factors that can impact rates.

Because premiums are based on multiple factors, the cost of a policy can vary substantially. An easy way to see how much coverage will cost for a particular business is to compare quotes with an independent insurance agent. Independent agents have the flexibility to show quotes from several different insurance companies, making it simple to quickly see differences in price and coverage.

Where Can Massachusetts Businesses Get CBD Insurance?

For help finding CBD insurance in Massachusetts, contact the independent insurance agents at Scotti Insurance Agency. Our agents will help you determine your business’ unique coverage needs, and we’ll help you find the best available policy that meets those needs.

 

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