Marijuana advocates have been championing the benefits of cannabis for decades. As cannabis and marijuana related products come more into the mainstream, greater attention is being paid to the effects these products have on people. Prior to legalization if a person smoked a bad strain of weed, they would find a new dealer or take a long break before going back to the same person that provided the bad weed. There was little if any recourse if the product purchased on the street had unwanted effects. Now that states have taken the initiative to legalize marijuana in various formats across the country new remedies have been made available to those negatively impacted by the products they now purchase legally.
Cannabis product liability insurance could be the difference between saving your cannabis related business or having to close your doors. As a business owner, you can be sued by others for any damage resulting from the negligence of your business products that cause harm to others such as a defective product. This is a far cry from the days of just finding a new dealer. Product liability insurance pays for your damages and legal expenses if you are sued, and will also pay for medical fees of others who are harmed by your business.
Drug recalls do not happen often, but they do happen. These are a few of the worst:
Baycol – After four years on the market this drug, prescribed to patients with high cholesterol, was recalled by Bayer, its manufacturer. The drug reportedly caused more than 100,000 deaths and was connected to a muscle disorder that caused the kidneys to clog with protein from dying or dead muscle tissue. Vioxx – Manufactured by Merck, the recall of this arthritis pain reliever was one of the largest prescription recalls in history. As many as 140,000 people suffered from heart attacks or strokes after taking this drug. Bextra – Created to treat arthritis and other inflammation in the body, this drug was recalled by Pfizer after it was on the market for one year. It was associated with an increased risk of heart attack and stroke in some patients and was also found to cause a fatal skin condition.
The financial impact of a cannabis product liability suit reaches beyond damages and medical bills. This type of scenario can lead to a product recall, product inventory may have to be removed from shelves, and all of this comes at the expense of the cannabis business owner. Anytime there is conversation about damages and liability, there must be a conversation about attorneys and legal fees. While every business owner works to avoid these situations, they do occur and they can be very costly. Many if not all of these expenses and costs can be covered by a cannabis product liability insurance policy, but understand that policy limits do apply. It is important to review your policy with an experienced insurance agent and your attorney. Contact S2S Insurance today to review your risk management options.