Cannabis testing labs are not the first thing people think of when thinking of the cannabis business. When we begin to think of why cannabis is becoming legal in many states, it begins to make sense why the cannabis should be lab tested. Cannabis has a number of medical benefits and uses. For safety reasons the traditional medicinal products we use have certain information clearly displayed on the label. Our medicine is labeled with information regarding strength, dosage, and necessary warnings about side effects. As cannabis moves from the illegal market into the mainstream, these same standards will need to apply to marijuana. In order to define the parameters of safety, dosage and best use, cannabis must undergo testing. The need for testing is where cannabis testing labs come into play.
Due to a demand and need for cannabis testing labs, owners of these labs must be aware of the risks associated with the labs. Cannabis business owners should always look to mitigate risks in all facets of business including their cannabis testing lab facilities. Failure to properly insure your lab could lead to massive financial losses that many business owners cannot recover from. Expensive testing equipment, computers, documents, samples can all be damaged in an accidental fire, burglary, or other types of unpredictable peril. Business owners can protect their investment by mitigating risk and having property insurance for their cannabis testing labs.
One scientist analyzed a number of marijuana testing labs in Washington and discovered that four labs had gone months without rejecting any of the marijuana they had tested. These perfect results are virtually impossible to achieve without turning a blind eye or tampering with the data. In other words, the labs were simply letting the marijuana slide through the regulatory process, regardless of its contents or contaminants. As a result the legal cannabis available in many states may still contain contaminants and unknown levels of cannabinoids. Smoking certain bacterias that can develop in cannabis—the types that these testing labs are supposed to root out— can be dangerous to human health.
A qualified scientific laboratory will be required to follow specific scientific guidelines for testing and verifying the levels of CBD, THC and contaminants of the cannabis. These testing procedures are expensive and require high levels of expertise, are complex, and create a greater chance for mistakes to be made. Mistakes in testing could lead to recalls, stops in production and sales, product liability law suits and punitive damages which are all costly to the business owner. Cannabis testing labs must be protected through errors and omissions insurance matched with general and excess liability to prevent suffering financial losses that can cripple a business. Even certified labs that use highly trained professionals are at risk. No matter how well trained a professional is, there is the ability to make a mistake in the very complex field of scientific testing. It is critical that cannabis business owners work with an insurance agency that specializes in cannabis insurance to put together the right insurance package for their business.